BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                        AB 1907


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       Date of Hearing:  March 30, 2016


                          ASSEMBLY COMMITTEE ON AGRICULTURE


                                   Bill Dodd, Chair


       AB 1907  
       (Daly) - As Introduced February 11, 2016


       SUBJECT:  Orange County Fair:  sale of state property.


       SUMMARY:  Repeals the authorization for the Department of General  
       Services (DGS) to sell the Orange County Fair & Event Center property  
       (OC Fairgrounds) and remove OC fairgrounds from the list of state  
       assets to be sold.   


       EXISTING LAW:  


       1)Divides the state into agricultural districts, which may form  
         district agricultural associations (DAAs).


       2)Creates DAA 32a, the Orange County Fair, and authorizes DGS to sell  
         all or any portion of the real property that composes OC Fairgrounds.


       FISCAL EFFECT:  Unknown.


       COMMENTS:  In 2009, the Legislature, along with Governor  
       Schwarzenegger, approved legislation to facilitate the sale of the OC  
       Fairgrounds, as part of an effort to close a state budget deficit of  







                                                                        AB 1907


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       $42 billion. An auction was held in late 2010, with the winning bid  
       submitted by Facilities Management West; however, the original sale  
       price was deemed too low. While a new bid was renegotiated, it was  
       never approved by the Legislature.





       In 2011, a three-judge appellate panel halted the sale of the OC  
       Fairgrounds, overturning a lower court's decision that rejected an  
       injunction to stop the sale of the property.  In its decision, the  
       court cited flaws in the bidding process, as well as a lack of approval  
       and oversight from the Legislature.  Since that time, Governor Brown  
       has voiced his opposition to the sale of the OC Fairgrounds.  Since  
       2011, the OC Fairgrounds has been self-sustaining, thus operating at no  
       cost to taxpayers, and has drawn more than 1.3 million visitors every  
       year.





       This bill would strike two provisions that authorized DGS to sell the  
       property, and would formalize policy in place with the Brown  
       administration.  


       REGISTERED SUPPORT / OPPOSITION:




       Support


       California Fairs Alliance









                                                                        AB 1907


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       Orange County Employees Association


       Western Fairs Association




       Opposition


       None on file.




       Analysis Prepared by:Victor Francovich / AGRI. / (916) 319-2084