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repealed several requirements for fairs including: an annual
AB 2074
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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