BILL ANALYSIS Ó AB 2074 Page 1 Date of Hearing: April 13, 2016 ASSEMBLY COMMITTEE ON AGRICULTURE Bill Dodd, Chair AB 2074 (Rodriguez) - As Amended March 15, 2016 SUBJECT: Fairs: credential and courtesy pass admissions. SUMMARY: This bill repeals the requirements for fairs to submit an annual report to the Department of Food and Agriculture (CDFA) related to free pass admissions by fairs. EXISTING LAW: Requires that each state, district, county or citrus fruit fair annually report to CDFA regarding the total number of credential and courtesy pass admissions issued and honored at the fair. FISCAL EFFECT: Unknown. COMMENTS: CDFA's Division of Fairs and Expositions is responsible for overseeing the fairs throughout the state. Each fair operates with a degree of autonomy, with a board of directors appointed by the governor, and in accordance with state law governing the operation of state agencies. Fairs contribute a great deal to the State of California. They offer an opportunity for the local community to highlight its achievements, and in many cases, they recognize the agriculture of the local area. AB 2074 Page 2 Prior to 2010, the primary source of state funding for fairs was from horse racing license fees. The steady decline in license fees prior to 2010 had resulted in a deficiency in revenues generated to the Fair & Exposition Fund, which impacted fairs across the state. SB 16 X2 (Ashburn), Chapter 12, Statutes of 2009, provided a stable funding source to the fairs by allocating an annual appropriation of $32 million from the state's general fund (GF) to support fairs. In 2011, GF support was eliminated, and for the first time in 80 years, California fairs had to depend completely on self-generated revenues to operate, beginning January 1, 2012. According to the author, fairs have endured financial hardships since the state cut their funding in 2010. Repealing the requirement for an annual report on courtesy passes would alleviate some of the cost pressure to fairs, especially the smaller fairs. RELATED LEGISLATION: AB 315 (Bigelow), Chapter 512, Statutes of 2015, would have repealed several requirements for fairs including: an annual AB 2074 Page 3 report to CDFA related to free pass admissions by fairs; CDFA expenditures on exhibits, as specified; and, an annual conference related to judging exhibits. This bill was passed out of the Assembly on a 77-0 vote, but was substantially amended in the Senate and was removed from the Agriculture Committee's jurisdiction. AB 2490 (Eggman), Chapter 342, Statutes of 2014, modified District Agricultural Association's (DAAs) requirements for activities needing prior approval by CDFA and/or the Department of General Services; recast language expanding duties; and, made technical conforming changes. AB 1647 (Bigelow) of 2014 would have repealed several requirements for fairs including: an annual report to CDFA related to free pass admissions by fairs; CDFA expenditures on exhibits, as specified; and, an annual conference related to judging exhibits. This bill was passed out of the Assembly on a 78-0 vote, but was substantially amended in the Senate and was removed from the Agriculture Committee's jurisdiction. SB 741 (Cannella) of 2013 would have made several substantive and clarifying changes to current law related to the operation, oversight, and funding of the network of California fairs, and contained an urgency clause. This bill was held in the Assembly Appropriations Committee. AB 2074 Page 4 AB 2345 (Ma) of 2012 would have established the California Fair Network Commission as a nonprofit mutual-benefit corporation to assess fees for services; managed funds; and, provided administration and oversight of California's fairs. This bill was held in the Assembly Appropriations Committee. SB 1085 (Runner), Chapter 320, Statutes of 2010, allows the 50th DAA, with the consent of the Secretary of CDFA, to enter into a joint powers agreement with a nonprofit organization to operate, maintain, and improve the 50th DAA. REGISTERED SUPPORT / OPPOSITION: Support None on file. Opposition AB 2074 Page 5 None on file. Analysis Prepared by:Victor Francovich / AGRI. / (916) 319-2084