BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 315|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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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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