BILL ANALYSIS Ó
SENATE COMMITTEE ON AGRICULTURE
Senator Cathleen Galgiani, Chair
2015 - 2016 Regular
Bill No: AB 315 Hearing Date: 7/7/15
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|Author: |Bigelow |
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|Version: |3/19/15 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Anne Megaro |
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Subject: Fairs: annual reports and expenditures
SUMMARY :
This bill would repeal the requirement that fairs provide an
annual report of the number of credential and courtesy pass
admissions issued; repeal the requirement that the California
Department of Food and Agriculture spend $100,000 for specified
exhibits and $15,000 for a conference of fair exhibit judges.
BACKGROUND AND EXISTING
LAW :
California fairs have been in existence since 1854, and the
network has since grown to encompass 78 fairs statewide. This
network of California fairs is composed of 52 district
agricultural associations (DAA), 23 county fairs, 2 citrus fruit
fairs, and The California Exposition and State Fair (Cal Expo).
DAAs are state government entities governed by nine-member
gubernatorial appointed boards of directors (fair boards). In
contrast, county fairs are county government or not-for-profit
organizations; citrus fruit fairs are not-for-profit
organizations; and Cal Expo is a state agency.
In 2009, California fairs generated a $2.85 billion economic
impact from consumer sales, $855 million in income for
California employees, $127 million in annual state and local tax
revenues, and provided 25,000 jobs. Fairs serve the local
community by providing a venue for a variety of agricultural and
local community events such as livestock shows and competitions,
county fairs, trade shows, exhibits, and food, nutrition, and
agricultural education. Fairgrounds also serve the state by
assisting in emergency preparedness and response. In the event
AB 315 (Bigelow) Page 2 of ?
of natural disasters, fairgrounds may be transformed into
command centers for CalFire, CalEMA, Homeland Security, law
enforcement, and FEMA. They also provide shelter for displaced
persons and their pets and livestock.
The Division of Fairs and Expositions within the California
Department of Food and Agriculture (CDFA) provides fiscal and
policy oversight for the network of California fairs; and the
Department of General Services (DGS) provides oversight for use
of state property, procurement, and services contracts (Business
and Professions Code §19400 et seq.; Food and Agricultural Code
§3001 et seq.).
Existing law:
1) Requires that each fair which receives state funds
provide an annual report to the secretary of the California
Department of Food and Agriculture (CDFA) of the number of
credential and courtesy pass admissions issued and honored
at the fair.
2) Requires the secretary of CDFA to spend up to $100,000
per fiscal year for any exhibits located at a
state-supported fair that demonstrates how food and fiber
is produced and used in the state.
3) Requires the secretary of CDFA spend a maximum $15,000
annually for a conference of fair judges to assist in
prescribing regulations for the judging of exhibits and for
determining the maximum amount of premiums to be offered
and paid for all types of exhibits.
PROPOSED
LAW :
This bill:
1) Repeals the requirement that fairs provide an annual
report to CDFA of the number of credential and courtesy
pass admissions issued and honored at the fair.
2) Repeals the requirement that the secretary of CDFA spend
a maximum $100,000 per fiscal year for any exhibits located
at a state-supported fair that demonstrates how food and
fiber is produced and used in the state.
AB 315 (Bigelow) Page 3 of ?
3) Repeals the requirement that the secretary of CDFA spend
a maximum $15,000 annually for a conference of fair exhibit
judges.
ARGUMENTS IN SUPPORT:
According to the author, "The Governor has slashed the Fair and
Exposition Fund completely, drying up our rural fairs' funding
foundation for the foreseeable future. It is imperative the
legislature and Governor act to alleviate any cost pressures
county fairs are facing." Specifically, this bill would remove
the annual credential and courtesy passes reporting requirement,
the requirement that CDFA fund exhibits highlighting food
production, and the requirement that CDFA provide for an annual
conference for fair judges.
COMMENTS :
Financial state of fairs. The source of state funding for DAAs
has historically been dependent on horse racing license fees,
which in recent years have significantly declined. In 2009, the
legislature recognized the need for a new source of funding for
the continuation of fairs and, thus, continuously appropriated
$32 million from the state's General Fund to be paid into the
Fairs and Exposition Fund (F&E Fund) [SB 16 X2 (Ashburn)].
However, the 2011-12 state budget eliminated General Fund
contributions to the F&E Fund, requiring DAAs to be
self-sufficient as of January 1, 2012. Since that time, several
bills have been introduced and proposals have been discussed
that aim to reduce DAA operating and administrative costs.
Given that DAAs are state entities, these proposals have
generally focused on reducing state oversight and specified
requirements while increasing local decision-making and
flexibility.
Informational hearing. The Senate Committee on Agriculture held
an informational hearing in 2012 titled "The Future of Fairs in
California" to examine the financial status of fairs and discuss
alternative funding solutions to ensure the vitality of
California fairs. Testimony from fair industry representatives
acknowledged that many smaller fairs were at risk of closing if
alternative funding strategies and/or governance structures were
not utilized.
AB 315 (Bigelow) Page 4 of ?
2015/16 Budget. The budget appropriates $3.1 million from the
General Fund to CDFA to assist fair operations, training, and to
improve the financial stability of fairs statewide. The budget
also appropriates $7 million to fairs for deferred maintenance
as part of the governor's 2015 Five-Year Infrastructure Plan.
Author's amendments.
1) Strike Section 1 (page 2, lines 1 through 5, inclusive)
relating to annual reporting of credential and courtesy
passes issued.
RELATED
LEGISLATION :
AB 1647 (Bigelow) of 2014. Would have repealed the requirement
that specified fairs report the number of credential and
courtesy passes issued, and would repeal requirements that the
California Department of Food and Agriculture expend funds
relating to exhibits. This bill was substantially amended and
removed agricultural provisions.
AB 2490 (Eggman), Chapter 342, Statutes of 2014. Revises the
oversight responsibilities of CDFA and DGS in regards to
district agricultural associations, and makes conforming
changes.
SB 741 (Cannella) of 2013. Would revise the duties,
responsibilities, and powers of the California Department of
Food and Agriculture, the Department of General Services, and
district agricultural associations in regards to the operation,
oversight, administration, governance, and funding of the
network of California fairs. Held in the Assembly Committee on
Appropriations.
AB 2345 (Ma) of 2012. Would have established the California
Fair Network Commission as a nonprofit, mutual-benefit
corporation to assess fees for services, manage funds, and
provide administration and oversight of California's fairs. Held
in Assembly Committee on Appropriations.
AB 95 (Budget), Chapter 2, Statutes of 2011. Repeals the $32
million annual General Fund appropriation for the support of the
network of California fairs.
AB 315 (Bigelow) Page 5 of ?
SBX2 16 (Ashburn), Chapter 12, Statutes of 2009-10 Second
Extraordinary Session. Provides that horse racing license fees
no longer be paid into the Fairs & Expositions Fund, and instead
provides that beginning July 1, 2009, $32 million shall be
continuously appropriated from the state General Fund to the
Fairs and Exposition Fund for the support of the network of
California fairs.
PRIOR
ACTIONS :
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|Assembly Floor: |77 - 0 |
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|Assembly Appropriations Committee: |17 - 0 |
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|Assembly Agriculture Committee: |10 - 0 |
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SUPPORT :
Rural County Representatives of California
Western Fairs Association
OPPOSITION :
None received
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