BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        AB 315|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                   THIRD READING 


          Bill No:  AB 315
          Author:   Bigelow (R)
          Amended:  7/8/15 in Senate
          Vote:     21  

           SENATE AGRICULTURE COMMITTEE:  5-0, 7/7/15
           AYES:  Galgiani, Cannella, Berryhill, Pan, Wolk

           SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           ASSEMBLY FLOOR:  77-0, 4/30/15 (Consent) - See last page for  
            vote

           SUBJECT:   Fairs: annual expenditures


          SOURCE:    Author
          
          DIGEST:   This bill repeals the requirement that the California  
          Department of Food and Agriculture (CDFA) spend $100,000 for  
          specified exhibits and $15,000 for a conference of fair exhibit  
          judges.

          ANALYSIS: 
          
          Existing law:

          1)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.

          2)Requires the secretary of CDFA spend a maximum $15,000  








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            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.

          This bill:

          1)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.

          2)Repeals the requirement that the secretary of CDFA spend a  
            maximum $15,000 annually for a conference of fair exhibit  
            judges.

          Background
          
          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, two 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  
          of natural disasters, fairgrounds may be transformed into  
          command centers for California Department of Forestry and Fire  
          Protection, California Emergency Management Agency, Homeland  
          Security, law enforcement, and Federal Emergency Management  
          Agency.  They also provide shelter for displaced persons and  
          their pets and livestock.







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          The Division of Fairs and Expositions within the CDFA provides  
          fiscal and policy oversight for the network of California fairs;  
          and the Department of General Services 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.).

          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) [SBX2-16 (Ashburn, Chapter  
          12, Statutes of 2009-10, Second Extraordinary Session)].  

          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. 

          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.








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          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          SUPPORT:   (Verified8/18/15)


          Rural County Representatives of California
          Western Fairs Association


          OPPOSITION:   (Verified8/18/15)


          None received

          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 removes the requirement that CDFA fund exhibits  
          highlighting food production and the requirement that CDFA  
          provide for an annual conference for fair judges.

          ASSEMBLY FLOOR:  77-0, 4/30/15
          AYES:  Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,  
            Bonilla, Bonta, Brough, Brown, Burke, Calderon, Chang, Chau,  
            Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd,  
            Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia,  
            Eduardo Garcia, Gatto, Gipson, Gonzalez, Gordon, Gray, Grove,  
            Hadley, Harper, Roger Hernández, Holden, Irwin, Jones,  
            Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,  
            Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,  
            Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,  
            Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,  
            Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,  
            Wilk, Williams, Wood, Atkins
          NO VOTE RECORDED:  Campos, Chávez, Gomez

          Prepared by:Anne Megaro / AGRI. / (916) 651-1508
          8/18/15 17:03:32









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