BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 315| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 AB 315 Page 2 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. AB 315 Page 3 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. AB 315 Page 4 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 AB 315 Page 5 **** END ****