BILL ANALYSIS Ó AB 1907 Page 1 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 Page 2 $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 Page 3 Orange County Employees Association Western Fairs Association Opposition None on file. Analysis Prepared by:Victor Francovich / AGRI. / (916) 319-2084