BILL ANALYSIS Ó AB 1907 Page 1 ASSEMBLY THIRD READING AB 1907 (Daly) As Amended May 27, 2016 Majority vote ------------------------------------------------------------------ |Committee |Votes|Ayes |Noes | | | | | | | | | | | | | | | | |----------------+-----+----------------------+--------------------| |Agriculture |8-0 |Dodd, Mathis, Eggman, | | | | |Gray, Irwin, | | | | |Jones-Sawyer, Quirk, | | | | |Salas | | | | | | | |----------------+-----+----------------------+--------------------| |Appropriations |19-0 |Gonzalez, Bigelow, | | | | |Bloom, Bonilla, | | | | |Bonta, Calderon, | | | | |Chang, Daly, Eggman, | | | | | | | | | | | | | | |Eduardo Garcia, | | | | | | | | | | | | | | |Roger Hernández, | | | | |Holden, Jones, | | | | |Obernolte, Quirk, | | | | |Santiago, Wagner, | | | | |Weber, Wood | | AB 1907 Page 2 | | | | | | | | | | ------------------------------------------------------------------ SUMMARY: Repeals the authorization for the Department of General Services (DGS) to sell the Orange County Fair & Event Center property (OCF) and remove OCF 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 OCF. FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill has forgone potential one-time General Fund (GF) revenues in the range of $100 million. However, DGS is not currently planning to sell OCF so any foregone revenue is uncertain. COMMENTS: In 2009, the Legislature, along with Governor Schwarzenegger, approved legislation to facilitate the sale of the OCF, as part of an effort to close a state budget deficit of $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 OCF, 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 AB 1907 Page 3 of approval and oversight from the Legislature. Since that time, Governor Brown has voiced his opposition to the sale of the OCF. Since 2011, the OCF 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. Analysis Prepared by: Victor Francovich / AGRI. / (916) 319-2084 FN: 0003136