BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2074


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          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.








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          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  








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          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.  









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          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










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          None on file.




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