Amended in Assembly April 12, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2678

Introduced by Assembly Member Gray

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(Coauthors: Assembly Members Bigelow, Cooper, Dodd, Gallagher, Mathis, and Salas)

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February 19, 2016

An act to begin delete add end delete begin insert amend, repeal, and add Section 19620.2 of the Business and Professions Code, and to add and repeal end insert Sections 6453.1 and 7101.4 begin delete to end delete begin insert of end insert the Revenue and Taxation Code, relating to begin delete state designated end delete begin insert state-designated end insert fairs, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 2678, as amended, Gray. begin delete State designated end delete begin insert State-designated end insert fairs: funding.

Existing law establishes the Fair and Exposition Fund to, among other things, allocate moneys for the support of the network of California fairs. begin delete Existing law requires certain license fees from satellite wagering to be deposited into a separate account in the Fair and Exposition Fund, and continuously appropriates those moneys for specified fair-related purposes, including, among others, the payment of expenses incurred in establishing and operating satellite wagering facilities at fairs and for health and safety repair and other projects at fairs. end delete begin insert The balance of moneys in that fund, after appropriation by the Legislature for specified oversight and auditing costs are continuously appropriated for capital outlay for specified fair projects. end insert Existing sales and use laws impose taxes on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state measured by sales price, and requires that revenues, less refunds, derived from a specified rate of that tax be transferred to specified funds and then the balance to the General Fund.

This bill would require a tax return filed for the purposes of the Sales and Use Tax Law to segregate the gross receipts of the seller and the sales price of the property on a form prescribed by the State Board of Equalization when the place of sale or use in this state is on or within the real property of a begin delete state designated end delete begin insert state-designated end insert fair, as defined, or any real property of a begin delete state designated end delete begin insert state-designated end insert fair that is leased to another party.

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This

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begin insert The end insert bill would require, except as specified, that 30% of all revenues, less refunds and costs of administration, derived from those segregated sales and use tax amounts that would have been deposited into the General Fund instead be deposited into begin delete that separate account in end delete the Fair and Exposition Fund and continuously appropriated for begin delete those same types of fair-related purposes. end delete begin insert specified fair projects. end insert

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The bill would repeal these provisions on January 1, 2022.

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Vote: ²⁄₃. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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begin insert Section 19620.2 of the end insert begin insert Business and Professions
Code end insert begin insert is amended to read: end insert

19620.2.  

(a) Any unallocated balance from Section 19620.1
begin insert and any revenue deposited in the Fair and Exposition Fund
pursuant to Section 7101.4 of the Revenue and Taxation Code end insert is
hereby appropriated without regard to fiscal years for allocation
by the Secretary of Food and Agriculture for capital outlay to
California fairs for fair projects involving public health and safety,
for fair projects involving major and deferred maintenance, for
fair projects necessary due to any emergency, for projects that are
required by physical changes to the fair site, for projects that are
required to protect the fair property or installation, such as fencing
and flood protection, and for the acquisition or improvement of
any property or facility that will serve to enhance the operation of
the fair.

(b) A portion of the funds subject to allocation pursuant to
subdivision (a) may be allocated to California fairs for general
operational support. It is the intent of the Legislature that these
moneys be used primarily for those fairs whose sources of revenue
may be limited for purposes specified in this section.

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(c) This section shall be repealed on January 1, 2022.

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begin insert SEC. 2. end insert   

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begin insert Section 19620.2 is added to the end insert begin insert Business and
Professions Code end insert begin insert , to read: end insert

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begin insert 19620.2. end insert   

(a) Any unallocated balance from Section 19620.1
is hereby appropriated without regard to fiscal years for allocation
by the Secretary of Food and Agriculture for capital outlay to
California fairs for fair projects involving public health and safety,
for fair projects involving major and deferred maintenance, for
fair projects necessary due to any emergency, for projects that are
required by physical changes to the fair site, for projects that are
required to protect the fair property or installation, such as fencing
and flood protection, and for the acquisition or improvement of
any property or facility that will serve to enhance the operation
of the fair.

(b) A portion of the funds subject to allocation pursuant to
subdivision (a) may be allocated to California fairs for general
operational support. It is the intent of the Legislature that these
moneys be used primarily for those fairs whose sources of revenue
may be limited for purposes specified in this section.

(c) This section shall become operative on January 1, 2022.

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begin delete SECTION 1. end delete

begin insert SEC. 3. end insert   

Section 6453.1 is added to the Revenue and Taxation
Code, to read:

6453.1.  

(a) For purposes of this part only, the return shall
segregate the gross receipts of the seller and the sales price of the
property begin delete on a form prescribed by the board end delete when the place of sale
in this state or use in this state for purposes of this part is on or
within the real property of a begin delete state designated end delete begin insert state-designated end insert fair
or any real property of a begin delete state designated end delete begin insert state-designated end insert fair that
is leased to another party.

(b) For purposes of this section, begin delete “state designated end delete
begin insert “state-designated end insert fair” means a state designated fair as defined in
Sections 19418, 19418.1, 19418.2, and 19418.3 of the Business
and Professions Code.

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(c) The board shall develop a form for purposes of this section.

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(d)

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begin insert (c) end insert  Notwithstanding any provision of the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section
7200)) or the Transactions and Use Tax Law (Part 1.6
(commencing with Section 7251)), this section shall not apply with
respect to any tax levied by a county, city, or district pursuant to,
or in accordance with, either of those laws.

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(d) This section shall be repealed on January 1, 2022.

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begin delete SEC. 2. end delete

begin insert SEC. 4. end insert   

Section 7101.4 is added to the Revenue and Taxation
Code, to read:

7101.4.  

begin insert (a) end insert begin insert   end insert Notwithstanding Section 7101 or any other law,
except as otherwise required to be transferred pursuant to the
California Constitution or Sections 6051.2, 6051.8, 6051.15,
6201.2, 6201.8, 6201.15, and 7101.3 or subdivision (a) of Section
7102, 30 percent of all revenues, less refunds and costs of
administration, derived under this part that were segregated
pursuant to Section 6453.1, upon receipt shall be transferred to the
Fair and Exposition Fund in the State begin delete Treasury, and shall be
deposited into the separate account in the fund specified in Section
19606.1 of the Business and Professions Code. end delete begin insert Treasury. end insert Any
amounts deposited begin delete into that account end delete in the Fair and Exposition
Fund pursuant to this section shall be continuously appropriated
and allocated as provided in begin delete Section 19606.1 of the Business and
Professions Code, except that any amounts transferred to the Fair
and Exposition Fund pursuant to subdivision (g) of Section 19606.1
shall be allocated in accordance with end delete Section 19620.2 of the
Business and Professions Code.

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(b) This section shall be repealed on January 1, 2022.

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