BILL NUMBER: SB 741 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Cannella
(Coauthors: Senators Fuller, Gaines, and Nielsen)
(Coauthors: Assembly Members Bigelow, Dahle, Gray, Olsen, Perea,
V. Manuel Pérez, and Williams)
FEBRUARY 22, 2013
An act to amend Sections 19606.1, 19614, 19620, and 19620.2 of,
and to repeal Sections 19608.3 and 19620.1 of, the Business and
Professions Code, to amend Sections 3954, 3965, 3965.1, and 3967 of,
to repeal Sections 4051.1, 4051.2, 4057, and 4401.5 of, and to repeal
and add Sections 3200, 4051, and 4053 of, the Food and Agricultural
Code, and to amend Section 11011.2 of the Government Code, relating
to fairs, making an appropriation therefor, and declaring the urgency
thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 741, as introduced, Cannella. California fairs: funding.
(1) Existing law regulates horse racing in this state and
provides, among other things, for the payment and distribution of
license fees in connection with horse racing meetings. Existing law
establishes the Fair and Exposition Fund to, among other things,
allocate moneys for the support of the network of California fairs.
Existing law requires certain license fees from satellite wagering to
be deposited into a separate account in the Fair and Exposition
Fund, and continuously appropriates those moneys for specified
purposes, including, among others, the payment of expenses incurred
in establishing and operating satellite wagering facilities at fairs.
This bill would delete the provisions requiring satellite wagering
license fees to be deposited into a separate account in the Fair and
Exposition Fund and to be continuously appropriated for specified
purposes. The bill would instead require certain revenues paid by
racing associations and fairs generated by parimutuel wagering and
certain revenues from live races paid by fair racing associations as
license fees to be deposited into the Fair and Exposition Fund and
would require those funds to be continuously appropriated for various
purposes, including, among others, capital improvements at
fairgrounds. The bill would also require all funds appropriated for
California fairs and expositions to be deposited into the Fair and
Exposition Fund and would continuously appropriate those funds for
various purposes. By continuously appropriating the funds in the Fair
and Exposition Fund, the bill would make an appropriation.
(2) Existing law provides that the Department of Food and
Agriculture is responsible for providing oversight of activities
carried out by each California fair, including, but not limited to,
conducting fiscal and performance audits of county fairs and citrus
fruit fairs that are either requested by the fair or that the
department deems necessary, and conducting, or causing to be
conducted, annual fiscal audits and periodic compliance audits.
This bill would delete the requirement that the department conduct
the audits described above and would instead require the department
to provide that the books and accounts for the prior calendar year of
all state-designated fairs receiving money from the Fair and
Exposition Fund be examined and reviewed annually and audited once
every 5 years by an independent certified public accountant or
certified public accountancy firm. The bill would require a summary
of the examination to be appended to the fair's annual statement of
operation, and would provide that the costs of the annual review or
audit be the responsibility of each fair.
(3) Existing law requires the Legislature, from the total revenue
received from the Department of Food and Agriculture, to annually
appropriate moneys to the department as it deems necessary for the
oversight of the network of California fairs and to perform audits.
Existing law continuously appropriates any of those funds that are
unallocated to the Secretary of Food and Agriculture for specified
purposes.
This bill would delete those provisions and instead would
appropriate any unallocated balance in the Fair and Exposition Fund
without regard to fiscal years for allocation by the secretary for
capital outlay to California fairs for specified purposes. The bill
would also specify that no more than 10% of those funds may be used
during any year by the Division of Fairs and Expositions to provide
oversight and administration of the network of fairs. The bill would
require the secretary to annually project the available funds from
the Fair and Exposition Fund and to prepare an annual expenditure
plan for review and approval by the Joint Committee on Fairs
Allocation and Classification. The bill would require the secretary's
recommendations to be deemed approved 30 days after they are
received unless they are rejected by the committee.
(4) Existing law divides the state into agricultural districts and
provides for the management of these districts by district
agricultural associations. Existing law provides for a board of
directors for each district agricultural association, and provides
for the appointment of each director by the Governor.
This bill would authorize the Governor to remove a director for
cause, upon recommendation by the board.
(5) Existing law specifies the duties and responsibilities of
district agricultural associations, and requires a district
agricultural association to obtain the approval of the Department of
Food and Agriculture prior to exercising certain powers, including,
among others, the power to sue. Existing law also requires a district
agricultural association to obtain the approval of both the
Department of Food and Agriculture and the Department of General
Services in order to exercise certain other powers, including the
power to conduct activities upon the district agricultural
association's property, contract, purchase, or convey an interest in
either real or personal property, or to use or manage its real estate
or personal property.
This bill would revise the duties and responsibilities of the
Department of Food and Agriculture and the Department of General
Services with respect to district agricultural associations, and,
among other things, would delete the requirement that a district
agricultural association obtain the Department of Food and
Agriculture's approval prior to suing. The bill would also delete the
requirement that a district agricultural association obtain prior
approval from both the Department of Food and Agriculture and the
Department of General Services prior to conducting activities upon
the district agricultural association's own property, or entering
into a contract or exercising powers over its own real or personal
property. The bill would require the board of directors of a district
agricultural association to adopt policies and procedures for
contracts, including adopting and publishing competitive bidding
procedures for the award of any procurement or contract involving an
expenditure of more than $100,000, and would require a district
agricultural association to contract in accordance with those
procedures. The bill would specify that the title, control, and
possession of all personal property acquired, held, managed, or
operated by a district agricultural association vests with the
district agricultural association. The bill would delete a provision
requiring the Secretary of Food and Agriculture to expend up to
$100,000 each fiscal year for an exhibit or exhibits at a fair that
demonstrates the process of production and use of food and fiber, and
would also delete a requirement that the secretary provide for a
conference of fair judges to aid the department in prescribing
regulations, and to expend up to $15,000 for that purpose. The bill
would make other conforming and related changes.
(6) 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. Section 19606.1 of the Business and Professions Code is
amended to read:
19606.1. (a) All license fees from satellite wagering
that are deposited in the Fair and Exposition Fund
revenues transferred pursuant to Section 19616.52 and subdivision (d)
of Section 19614 shall be deposited in a separate
account in the fund the Fair and Exposition Fund
and, notwithstanding Section 13340 of the Government Code, are
continuously appropriated from that account
the fund to the Department of Food and Agriculture, for
allocation by the Secretary of Food and Agriculture, at his or her
discretion, for the purposes set forth in paragraphs (1) to (6),
inclusive. The concurrence of the Director of Finance shall be
required for allocations pursuant to paragraphs (1) and (2).
Allocations pursuant to paragraphs (3) to (6), inclusive, shall be
made with the concurrence of the Joint Committee on Fairs Allocation
and Classification.
(1) For the repayment of the principal of, interest on, and costs
of issuance of, and as security, including any coverage factor,
pledged to the payment of, bonds issued or to be issued by a joint
powers agency or other debt service or expense, including repayment
of any advances made or security required by any provider of credit
enhancement or liquidity for those bonds or other indebtedness or
expenses of maintaining that credit enhancement or liquidity,
incurred for the purpose of constructing or acquiring improvements at
a fair's racetrack inclosure, satellite wagering facilities at
fairs, health and safety repair projects, or handicapped access
compliance projects at fairs or for the purpose of refunding bonds or
other indebtedness incurred for those purposes. As used in this
paragraph, "coverage factor" means revenues in excess of the amount
necessary to pay debt service on the bonds or other indebtedness, up
to an amount equal to 100 percent more than the amount of that debt
service, which a joint powers agency, pursuant to the resolution or
indenture under which the bonds or other indebtedness are or will be
issued, pledges as additional security for the payment of that debt
service or is required to have or maintain as a condition to the
issuance of additional bonds or other indebtedness. Notwithstanding
any other provision of law, the department may
also commit any funds available for allocation under Article 10
(commencing with Section 19620) to complete projects funded under
this paragraph in the priority described in this paragraph.
(2) For payment to the State Race Track Leasing Commission to be
pledged for the repayment of debt necessary to construct a racetrack
grandstand at the 22nd District Agricultural Association fairgrounds.
This payment shall be made only if the Secretary of Food
and Agriculture secretary determines, annually,
that all other pledged revenues have been applied to the repayment of
that debt and have been determined by the secretary to be inadequate
for that purpose.
(3) For the payment of expenses incurred in establishing and
operating satellite wagering facilities at fairs.
(4) For the support of an equipment and operating fund to produce
and display a consolidated California signal at satellite wagering
facilities and fairs.
(5) For health and safety repair projects at fairs, which includes
fire and life safety improvement projects, California Code of
Regulations compliance projects, and long-term deferred maintenance
projects.
(6) For the development and payment of revenue generating
projects, the establishment of pilot projects to restructure the
current fair system, and for projects realizing a cost savings for
more efficient utilization of existing fair resources.
(3) For the general support of the network of California fairs
pursuant to the provisions of this chapter.
(4) For health and safety repair projects at fairs, including fire
and life safety improvement projects, regulatory compliance
projects, and long-term deferred maintenance projects.
(5) For capital improvements at fairgrounds. In making
determinations to fund capital improvements pursuant to this
paragraph, the secretary may grant priority status to renewable
energy generation projects.
(6) For the payment of expenses incurred in developing and
operating revenue generating projects at fairs, or which directly
benefit fairs, including the payment of expenses incurred in
establishing and operating horse racing facilities, industry
training, the establishment of pilot projects to restructure the
current fair system, and for projects realizing a cost savings for
more efficient utilization of existing fair resources.
(b) The Secretary of Food and Agriculture
secretary may not make an allocation for purposes of paragraphs
(2) to (6), inclusive, of subdivision (a) until the payments
required in any fiscal year pursuant to paragraph (1) of subdivision
(a) have been funded.
(c) Pursuant to subdivision (a), the Joint Committee on Fairs
Allocation and Classification shall review and concur, or not concur,
with the secretary's determination of the allocations to be made
pursuant to paragraphs (3) to (6), inclusive, of subdivision (a) in
total, and the committee may not add to, or delete projects or line
items from, the proposed allocations.
(d) Approval of the Joint Committee on Fairs Allocation and
Classification is deemed complete when one of the following
conditions is met:
(1) The annual Budget Act is enacted.
(2) If the secretary's recommendations are received by the Joint
Committee on Fairs Allocation and Classification after the enactment
of the annual Budget Act, the recommendations shall be deemed
approved 30 days after they are received unless they are rejected by
the committee.
(d) The secretary's recommendations to the Joint Committee on
Fairs Allocation and Classification shall be deemed approved 30 days
after they are received unless they are rejected by the committee.
(e) If the Joint Committee on Fairs Allocation and Classification
does not concur with the secretary's recommendations, the secretary
may submit another set of recommendations to the committee pursuant
to this section.
(f) The payments required in any fiscal year for the purposes of
paragraphs (1) to (3), inclusive, and (2)
of subdivision (a) shall be made before any transfer
is made the secretary may utilize any moneys
pursuant to subdivision (g).
(g) Except as otherwise provided in subdivision (f), if the
revenues deposited in the separate account exceed eleven million
dollars ($11,000,000) in any fiscal year, the amount in excess of
eleven million dollars ($11,000,000) shall be transferred to the Fair
and Exposition Fund for allocation in accordance with Section
19620.1.
(h) All of the costs of administering the account created by
subdivision (a) shall be charged to the account.
(g) Except as otherwise provided in subdivision (f), when the
revenues deposited in the Fair and Exposition Fund exceed the amount
necessary to satisfy the purposes of paragraphs (1) and (2) of
subdivision (a), the secretary may utilize the excess amounts plus
the amounts deposited to the credit of the Fair and Exposition Fund
pursuant to subdivision (d) of Section 19614 and any other revenues
deposited to the credit of the fund to make allocations from the fund
for the purposes of Section 19620.2.
SEC. 2. Section 19608.3 of the Business and Professions Code is
repealed.
19608.3. (a) Funds allocated by the Secretary of Food and
Agriculture pursuant to paragraph (5) of subdivision (a) of Section
19606.1 for fire and life safety improvement projects, California
Code of Regulations compliance projects, and long-term deferred
maintenance projects at fairs in the northern zone shall be allocated
in accordance with a project schedule determined by the Department
of Food and Agriculture in compliance with this section.
(b) The department shall prepare a three-year schedule of these
projects which commences July 1, 1987, and shall annually update the
schedule. The schedule shall list individual project costs, contain a
project description, and specify estimated project completion dates.
SEC. 3. Section 19614 of the Business and Professions Code is
amended to read:
19614. (a) Notwithstanding Sections 19611 and 19612, and except
for an association that qualifies pursuant to Section 19612.6, for a
fair conducting a live racing meeting, 1 percent of the total amount
handled on live races, excluding wagering at a satellite facility,
shall be retained by the fair association for payment to the state as
a license fee.
(b) Additionally, 0.48 percent of the total amount handled on live
racing, excluding wagering at a satellite facility, shall be
deposited with the official registering agency pursuant to
subdivision (a) of Section 19617.2, and shall thereafter be
distributed in accordance with subdivisions (b), (c), and (d) of
Section 19617.2.
(c) (1) After distribution of the applicable
amounts as set forth in subdivisions (a) and (b) and the payments
made pursuant to other relevant sections of this chapter, all funds
remaining from the deductions provided in Section 19610 shall be
distributed 47.5 percent as commissions and 52.5 percent as purses.
From the amount distributed as thoroughbred purses, a sum equal to
0.07 percent of the total handle shall be held by the association to
be deposited with the official registering agency pursuant to
subdivision (a) of Section 19617.2, and shall thereafter be
distributed in accordance with subdivisions (b), (c), and (d) of
Section 19617.2.
Any
(2) Any additional amount
generated for purses and not distributed during the previous
corresponding meeting shall be added to the purses at the current
meeting.
(d) In addition to the amounts deducted pursuant to Section 19610,
any fair racing association shall deduct 1 percent from the total
amount handled in its daily conventional and exotic parimutuel pools.
The additional 1 percent shall be deposited in the Fair and
Exposition Fund and is hereby appropriated for the purposes specified
in Section 19630 Sections 19606.1 and
19620.2 .
SEC. 4. Section 19620 of the Business and Professions Code is
amended to read:
19620. (a) The Legislature finds and declares that the Department
of Food and Agriculture is responsible for ensuring the integrity of
the Fair and Exposition Fund, administering allocations from the
fund to the network of California fairs, as defined in Sections 19418
to 19418.3, inclusive, and providing oversight of activities carried
out by each California fair.
(b) Oversight shall include, but not be limited to, the following:
(1) Monitoring the solvency of the Fair and Exposition Fund.
(2) Distributing available state resources to the network of
California fairs based on criteria for state allocations approved by
the Secretary of Food and Agriculture. The criteria for the
distribution of available state resources to the network of
California fairs shall not include a consideration of the structure
that governs the fair.
(3) Creating a framework for administration of the network of
California fairs allowing for maximum autonomy and local
decisionmaking authority, and conducting, or causing to be conducted,
annual fiscal audits and periodic compliance audits
reviews .
(4) Conducting fiscal and performance audits of county fairs and
citrus fruit fairs that are requested by the fair that is the subject
of the audit, and that the Department of Food and Agriculture deems
to be necessary.
(4) Requiring books and accounts for the prior calendar year of
all state-designated fairs receiving money from the fund to be
examined and reviewed annually and audited once every five years by
an independent certified public accountant or certified public
accountancy firm selected by the fair. A summary of this examination,
certified by the selected certified public accountant or certified
public accountancy firm, shall be appended to the fair's annual
statement of operations, along with the accountant or accounting firm'
s recommendations, for the approval of the secretary. The cost of a
fair's annual review or audit shall be the responsibility of each
fair. With the approval of the secretary, two or more fairs may
conduct or contract for a joint review or audit.
(5) Guiding and providing incentives to fairs to seek matching
funds and generate new revenue from a variety of sources.
(6) Supporting continuous improvement of fair programming to
ensure that California fairs remain highly relevant community
institutions.
SEC. 5. Section 19620.1 of the Business and Professions Code is
repealed.
19620.1. From the total revenue received by the department,
exclusive of money received pursuant to Sections 19640 and 19641, the
Legislature shall annually appropriate to the department those sums
as it deems necessary for the following purposes:
(a) For the oversight of the network of California fairs receiving
money from the fund.
(b) For the auditing of all district agricultural association
fairs, county fairs, and citrus fruit fairs.
SEC. 6. Section 19620.2 of the Business and Professions Code is
amended to read:
19620.2. (a) Any unallocated balance from Section
19620.1 in the Fair and Exposition Fund is
hereby appropriated without regard to fiscal years for allocation by
the Secretary of Food and Agriculture for capital outlay to
California fairs for fair projects involving public health and
safety, for fair projects involving major and deferred maintenance,
for fair projects necessary due to any emergency, for projects that
are required by physical changes to the fair site, for projects that
are required to protect the fair property or installation, such as
fencing and flood protection, and for the acquisition or improvement
of any property or facility that will serve to enhance the operation
of the fair.
(b) A portion of the funds subject to allocation pursuant to
subdivision (a) may be allocated to California fairs for general
operational support. It is the intent of the Legislature that these
moneys be used primarily for those fairs whose sources of revenue may
be limited for purposes specified in this section.
(c) Not more than 10 percent of the funds specified in subdivision
(a) may be used during any year by the Division of Fairs and
Expositions to provide oversight and administration of the network of
California fairs pursuant to this chapter.
(d) The secretary shall annually project the available funds from
the Fair and Exposition Fund and shall advise the Joint Committee on
Fairs Allocation and Classification of the administrative budget of
the Division of Fairs and Expositions and the additional staff and
contracts necessary to develop and administer an operational and
policy framework to oversee the network of California fairs and
include that amount in the annual expenditure plan described in
subdivision (e).
(e) The secretary shall prepare an annual expenditure plan for use
of the moneys available from the Fair and Exposition Fund for review
and approval by the Joint Committee on Fairs Allocation and
Classification. The Joint Committee on Fairs Allocation and
Classification shall review and concur, or not concur, with the
spending plan in total, and shall not add to, or delete projects or
line items from, the proposed allocation.
(f) The secretary's recommendations to the Joint Committee on
Fairs Allocation and Classification shall be deemed approved 30 days
after they are received unless they are rejected by the committee.
(g) If the Joint Committee on Fairs Allocation and Classification
does not concur with the secretary's recommendations, the secretary
may submit another set of recommendations to the committee.
SEC. 7. Section 3200 of the Food and Agricultural Code is
repealed.
3200. Notwithstanding any other provision of law, all funds
appropriated for California fairs and expositions pursuant to
Sections 19622, 19627, 19627.1, and subdivision (c) of Section
19627.2 of the Business and Professions Code for the 1995-96 fiscal
year shall not be utilized for the purposes specified in those
sections but shall, instead, be utilized for the purposes specified
in Section 19630 of the Business and Professions Code, and may be
allocated by the Secretary of Food and Agriculture to all state
designated fairs as defined by Section 19418 of the Business and
Professions Code, for the purposes specified in Section 19630.
SEC. 8. Section 3200 is added to the Food and Agricultural Code,
to read:
3200. (a) The Legislature finds and declares that funding for the
network of California fairs is a cooperative venture and is
anticipated to be generated from multiple sources, public and
private. Because of the benefits that accrue to the state and to its
residents by virtue of having the fair industry participate
cooperatively with the state for the purpose of effectively
overseeing and promoting fairs within the state, the Legislature
finds and declares that the fairs shall work collectively to identify
and designate new funding sources for fairs to be utilized for the
benefit of all fairs in the network.
(b) Notwithstanding any other law, all funds appropriated for
California fairs and expositions pursuant to this chapter or any
other law shall be deposited in the Fair and Exposition Fund and are
continuously appropriated as specified in Sections 19606.1 and
19620.2 of the Business and Professions Code.
(c) 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 and the fairs specified in Sections 19418.1, 19418.2, and
19418.3 of the Business and Professions Code 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.
SEC. 9. Section 3954 of the Food and Agricultural Code is amended
to read:
3954. Each association by its name has perpetual succession. It
may have a seal. An association may be sued and , with
approval of the department, may sue , and may do
any and all things necessary to carry out the powers and the objects
and purposes for which the association is formed.
SEC. 10. Section 3965 of the Food and Agricultural Code is amended
to read:
3965. The board may, with the approval of the department:
(a) Fix the term of office, the amount of bond, salary, and
prescribe the duties of the secretary and of the treasurer.
(b) Manage the affairs of the association.
(c) Make all necessary bylaws, rules, and regulations for the
government of the association.
(d) With the approval of the Department of General Services,
arrange for and conduct, or cause to be conducted, or by contract
permit to be conducted, by any other individual, institution,
corporation, or association, upon its property at such time as it may
deem advisable, any activity, notwithstanding any other provisions
of the code.
(e)
(d) Delegate, as it may deem advisable, to its officers
or employees any of the powers which that
are vested in the board under subdivisions
subdivision (b) and (d) of this section
. Any such delegation of powers
power may be revoked at any time.
SEC. 11. Section 3965.1 of the Food and Agricultural Code is
amended to read:
3965.1. (a) Notwithstanding
subdivision (d) of Section 3965 or Section
4051, the board may , with the approval of the
department, enter into the following types of contracts:
arrange for and conduct, or cause to be conducted, or by
contract permit to be conducted, by any other individual,
institution, corporation, or association, upon its property at a time
as it may be deemed advisable, any activity.
(a) Revenue generating contracts.
(b) Revenue Notwithstanding subdivision
(a), revenue generating contracts involving
hazardous activities , as determined by the department, as
long as may not be approved by the board unless
adequate insurance coverage is provided, as determined by the
department in consultation with the Department of General Services.
SEC. 12. Section 3967 of the Food and Agricultural Code is amended
to read:
3967. (a) Any director who misses three
consecutive regular meetings of the board without the permission of
the board is deemed to have resigned as a director
from the board .
(b) A director may be removed for cause by the Governor, upon
recommendation by the board.
SEC. 13. Section 4051 of the Food and Agricultural Code is
repealed.
4051. An association, with the approval of both the Department of
Food and Agriculture and the Department of General Services, may do
any of the following:
(a) Contract.
(b) Purchase, acquire, hold, sell, exchange, or convey any
interest in real or personal property and beautify or improve that
property. Any acquisition of land or other real property shall be
subject to the Property Acquisition Law (Part 11 (commencing with
Section 15850) of Division 3 of Title 2 of the Government Code).
(c) Lease, let, or grant licenses for the use of its real estate
or personal property, or any portion of that property, to any person
or public body for whatever purpose may be approved by the board.
(d) Use or manage its real estate or personal property, or any
portion of that property, for any or all of the purposes of this
section jointly with any lessee, sublessee, or licensee, or otherwise
use or manage the property in connection with the lease, sublease,
or license which is made or granted.
(e) Lease or let its real property for public park, recreational,
or playground purposes.
(f) Rent or permit the use of its premises for any purpose which
is beneficial to the agricultural industry, including, but not
limited to, the holding of sales or auctions of cattle or other
livestock.
(g) Contract with any county or county fair association for
holding a fair jointly with the county or county fair association.
The joint fair is a district fair of the association.
(h) Make permanent improvements upon publicly owned real property
adjacent to real property of the district when the improvements
materially benefit the property of the district.
(i) 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. The revenues, moneys, accounts, accounts receivable, contract
rights, and other rights to payment of whatever kind pledged by the
association or its assignees constitute a lien and security interest
which immediately attaches to the property so pledged and is
effective, binding, and enforceable against the association, its
successors, purchasers of the property so pledged, creditors, and all
others asserting rights therein, to the extent set forth, and in
accordance with, the terms and conditions of the pledge, irrespective
of whether those persons have notice of the pledge and without the
need for any physical delivery, recordation, filing, or further act.
SEC. 14. Section 4051 is added to the Food and Agricultural Code,
to read:
4051. Subject only to the conditions specified in this chapter,
an association may do any of the following:
(a) Contract in accordance with all of the following:
(1) The association 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 a
district agricultural association:
(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 on
behalf of the district agricultural association shall determine
whether the goods or services subject to this paragraph 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 subdivision, "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 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 utilize 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 utilized, and those entities or individuals identified
for subcontracting, if known.
(E) It is the intent of the Legislature in enacting this section
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 a district
agricultural association. In that regard, the board shall have an
affirmative duty to achieve the most feasible and practicable level
of participation by these small business entities in its procurement
programs.
(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 district agricultural association.
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 association and establish a
program for paying vendors who contract with the district
agricultural association.
(f) Contract with any county or county fair association for
holding a fair jointly with the county or county fair association.
The joint fair is a district fair of the association.
(g) Make or adopt all necessary orders, rules, or regulations for
governing the activities of the district agricultural association.
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.
(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 district
agricultural association the exercise of powers vested in the board
as the board may deem desirable for the orderly management and
operation of the association.
(j) Except as provided in subdivision (l), with the approval of
the Department of General Services, purchase, acquire, hold, sell, or
exchange, or convey any interest in real property for a period in
excess of 50 years. Any acquisition of land or other real property
shall be subject to the Property Acquisition Law (Part 11 (commencing
with Section 15850) of Division 3 of Title 2 of the Government
Code).
(k) Make permanent improvements upon publicly owned real property
adjacent to, or near the vicinity of, the real property of the
district agricultural association when the improvements materially
benefit the property of the association.
(l) Lease, let, or grant licenses for the use of its real property
or any portion of that property, to any person or public body for
whatever purpose as may be approved by the board. 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 as provided in
subdivision (j).
(m) Use or manage any of its property jointly or in connection
with any lessee or sublessee, for any purpose approved by the board.
(n) 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.
The revenues, moneys, accounts, accounts receivable, contract rights,
and other rights to payment of whatever kind pledged by the
association or its assignees constitute a lien or security interest
that immediately attaches to the property pledged, and is effective,
binding, and enforceable against the association, its successors,
purchasers of the property so pledged, creditors, and all others
asserting rights therein, to the extent set forth, and in accordance
with, the terms and conditions of the pledge, irrespective of whether
those persons have notice of the pledge and without the need for any
physical delivery, recordation, filing, or further action.
SEC. 15. Section 4051.1 of the Food and Agricultural Code is
repealed.
4051.1. (a) Notwithstanding any other provision of law, in
accordance with procedures established by the board, the board may
enter into agreements to secure donations, memberships, and corporate
and individual sponsorships, and may enter into marketing and
licensing agreements for the receipt of money, or services or
products in lieu of money, and may employ, or create and participate
in an entity, or enter into an agreement with an entity or person to
develop, solicit, sell, and service these agreements. The
compensation for the entity or person shall be established by the
board.
(b) Written notification to the department shall be required prior
to creating an entity for the activities described in this section
and prior to entering into any agreement for activities described in
this section if the agreement exceeds one hundred thousand dollars
($100,000) in value, exists for a period of greater than two years,
or contemplates the building of a permanent structure on fair
property. The department may, upon reasonable notice, examine the
books and records of any entity created pursuant to this section.
SEC. 16. Section 4051.2 of the Food and Agricultural Code is
repealed.
4051.2. An association shall not enter into a settlement
agreement for an amount greater than ten thousand dollars ($10,000)
without the prior approval of the department.
SEC. 17. Section 4053 of the Food and Agricultural Code is
repealed.
4053. The Director of Food and Agriculture may make available for
the use of any association any property of the state which is
suitable for the purposes of the association and which has been
obtained by the state by gift from any county or city, or otherwise,
without cost to the state.
SEC. 18. Section 4053 is added to the Food and Agricultural Code,
to read:
4053. Notwithstanding Section 14660.5 of the Government Code, the
title, control, and possession of all personal property acquired,
held, managed, or operated by a district agricultural association,
including property controlled or possessed by the association before
the enactment of this section, vests with the association.
SEC. 19. Section 4057 of the Food and Agricultural Code is
repealed.
4057. The state is not liable for any premium which is offered or
award that is made, or on account of any contract which is made, by
any association.
SEC. 20. Section 4401.5 of the Food and Agricultural Code is
repealed.
4401.5. (a) The director shall expend an amount not to exceed a
total of one hundred thousand dollars ($100,000) in any fiscal year
for any exhibit or exhibits located on any state-supported fair
demonstrating, in a creative and innovative manner, the process of
production and use of food and fiber from the producer to the
consumer in this state.
(b) The director shall annually provide for a conference of fair
judges to aid the department in prescribing regulations adopted
pursuant to Section 4501. The director may expend up to fifteen
thousand dollars ($15,000) in any fiscal year for such purposes.
SEC. 21. Section 11011.2 of the Government Code is amended to
read:
11011.2. (a) (1) Notwithstanding any other law, including, but
not limited to, Sections 11011 and 14670, except as provided in this
section, the Department of General Services may lease real property
under the jurisdiction of a state agency , or
department, or district agricultural association,
if the Director of General Services determines that the
real property is of no immediate need to the state but may have some
potential future use to the program needs of the agency ,
or department , or district
agricultural association .
(2) The Director of General Services may not lease any of the
following real property pursuant to this section:
(A) Tax-deeded land or lands under the jurisdiction of the State
Lands Commission.
(B) Land that has escheated to the state or that has been
distributed to the state by court decree in estates of deceased
persons.
(C) Lands under the jurisdiction of the State Coastal Conservancy
or another state conservancy.
(D) Lands under the jurisdiction of the Department of
Transportation or the California State University system, or land
owned by the Regents of the University of California.
(E) Lands under the jurisdiction of the Department of Parks and
Recreation.
(F) Lands under the jurisdiction of the Department of Fish and
Game Wildlife .
(3) A lease entered into pursuant to this section shall be set at
the amount of the lease's fair market value, as determined by the
Director of General Services. The Director of General Services may
determine the length of term or a use of the lease, and specify any
other terms and conditions which that
are determined to be in the best interest of the state.
(b) The Department of General Services may enter into a long-term
lease of real property pursuant to this section that has outstanding
lease revenue bonds and for which the real property cannot be
disencumbered from the bonds, only if the issuer and trustee for the
bonds approves the lease transaction, and this approval takes into
consideration, among other things, that the proposed lease
transaction does not breach a covenant or obligation of the issuer or
trustee.
(c) (1) All issuer- and trustee-related costs for reviewing a
proposed lease transaction pursuant to this section, and all other
costs of the lease transaction related to the defeasance or other
retirement of any bonds, including the cost of nationally recognized
bond counsel, shall be paid from the proceeds of that lease.
(2) The Department of General Services shall be reimbursed for any
reasonable costs or expenses incurred in conducting a transaction
pursuant to this section.
(3) Notwithstanding subdivision (g) of Section 11011, the
Department of General Services shall deposit into the General Fund
the net proceeds of a lease entered into pursuant to this section,
after deducting the amount of the reimbursement of costs incurred
pursuant to this section or the reimbursement of adjustments to the
General Fund loan made pursuant to Section 8 of Chapter 20 of the
2009-10 Fourth Extraordinary Session from the lease.
(d) The Department of General Services shall transmit a report to
each house of the Legislature on or before June 30, 2011, and on or
before June 30 each year thereafter, listing every new lease that
exceeds a period of five years entered into under the authority of
this section and the following information regarding each listed
lease:
(1) Lease payments.
(2) Length of the lease.
(3) Identification of the leasing parties.
(4) Identification of the leased property.
(5) Any other information the Director of General Services
determines should be included in the report to adequately describe
the material provisions of the lease.
SEC. 22. 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 California fairs as soon as
possible, it is necessary that this act take effect immediately.