BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1907|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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THIRD READING
Bill No: AB 1907
Author: Daly (D), et al.
Amended: 5/27/16 in Assembly
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 6/28/16
AYES: Hall, Berryhill, Bates, Block, Gaines, Galgiani, Glazer,
Hernandez, Hill, Hueso, Lara, McGuire, Vidak
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/11/16
AYES: Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen
ASSEMBLY FLOOR: 69-9, 6/1/16 - See last page for vote
SUBJECT: Orange County Fair: sale of state property
SOURCE: Author
DIGEST: This bill repeals the authorization for the
Department of General Services (DGS) to sell the Orange County
Fair (OCF) and removes OCF from the list of state assets to be
sold.
ANALYSIS:
Existing law:
1)Divides the state into agricultural districts within the
boundaries of which agricultural associations may be formed.
2)Creates District 32a from real property commonly known as the
Orange County Fair and authorizes the DGS to sell all or any
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portion of the real property that composes District 32a.
This bill repeals the authorization for DGS to sell the OCF and
removes OCF from the list of assets to be sold.
Background
Purpose of the bill. 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
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 strikes two provisions that authorized DGS to sell the
OCF, and would formalize policy in place with the Brown
Administration.
Prior/Related Legislation
ABX4 22 (Evans, Chapter 20, Statutes of 2009-2010, Fourth
Extraordinary Session) authorized DGS to establish a mechanism
whereby all or portion of the OCF could be sold.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee, unknown
foregone revenues, potentially in excess of $100 million
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(General Fund), to the extent DGS were to exercise the authority
to sell the property in the future.
SUPPORT: (Verified8/11/16)
California Fairs Alliance
Orange County Employees Association
Orange County Fair & Event Center
Western Fairs Association
OPPOSITION: (Verified8/11/16)
None received
ARGUMENTS IN SUPPORT: Supporters of this bill argue that the
passage of the bill will preserve the OCF as an ongoing local,
regional and statewide asset that began in 1890 and will
continue in perpetuity.
ASSEMBLY FLOOR: 69-9, 6/1/16
AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins,
Bigelow, Bloom, Bonilla, Bonta, Brown, Burke, Calderon,
Campos, Chang, Chau, Chiu, Chu, Cooley, Cooper, Dababneh,
Dahle, Daly, Dodd, Eggman, Frazier, Gallagher, Cristina
Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,
Gordon, Gray, Hadley, Roger Hernández, Holden, Irwin, Jones,
Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,
Maienschein, Mathis, McCarty, Medina, Melendez, Mullin,
Nazarian, O'Donnell, Quirk, Ridley-Thomas, Rodriguez, Salas,
Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner,
Waldron, Weber, Williams, Wood, Rendon
NOES: Baker, Brough, Chávez, Beth Gaines, Grove, Harper, Mayes,
Obernolte, Wilk
NO VOTE RECORDED: Olsen, Patterson
Prepared by:Felipe Lopez / G.O. / (916) 651-1530
8/15/16 20:26:59
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