BILL NUMBER: AB 2678 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 26, 2016
AMENDED IN ASSEMBLY APRIL 20, 2016
AMENDED IN ASSEMBLY APRIL 12, 2016
INTRODUCED BY Assembly Member Gray
(Coauthors: Assembly Members Bigelow, Cooper, Dodd, Gallagher,
Mathis, and Salas)
FEBRUARY 19, 2016
An act to amend, repeal, and add Section 19620.2 of the Business
and Professions Code, and to add and repeal Sections 6453.1 and
7101.4 of the Revenue and Taxation Code, relating to state-designated
fairs, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 2678, as amended, Gray. State-designated 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. 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. 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 state-designated fair,
defined to mean the 35th District Agricultural Association Merced
County Fair and the Merced County Spring Fair, fair,
as defined, which excludes any fair located in the County of Los
Angeles, or any real property of a state-designated fair that
is leased to another party.
The 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 the Fair
and Exposition Fund and continuously appropriated for allocation by
the Secretary of Food and Agriculture to the 35th District
Agricultural Association Merced County Fair and the Merced County
Spring Fair for specified fair projects.
The bill would repeal these provisions on January 1, 2022.
Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 19620.2 of the Business and Professions Code is
amended to read:
19620.2. (a) (1) Any unallocated balance from Section 19620.1 and
any revenue deposited in the Fair and Exposition Fund pursuant to
Section 7101.4 of the Revenue and Taxation Code 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.
(2) Any revenues deposited into the Fair and Exposition Fund
pursuant to Section 7101.4 of the Revenue and Taxation Code shall be
allocated by the Secretary of Food and Agriculture only to the 35th
District Agricultural Association Merced County Fair and the Merced
County Spring Fair for the purposes specified in paragraph (1) and as
specified in subdivision (b).
(2) Any revenues deposited into the Fair and Exposition Fund
pursuant to Section 7101.4 of the Revenue and Taxation Code shall not
be allocated to any fair located in the County of Los Angeles.
(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 be repealed on January 1, 2022.
SEC. 2. Section 19620.2 is added to the Business and Professions
Code, to read:
19620.2. (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.
SEC. 3. 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 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
state-designated fair or any real property of a state-designated fair
that is leased to another party.
(b) For purposes of this section, "state-designated fair" means
the 35th District Agricultural Association Merced County
Fair and the Merced County Spring Fair. a state
designated fair as defined in Sections 19418, 19418.1, 19418.2, and
19418.3 of the Business and Professions Code, excluding any fair
located in the County of Los Angeles.
(c) 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.
(d) This section shall be repealed on January 1, 2022.
SEC. 4. Section 7101.4 is added to the Revenue and Taxation Code,
to read:
7101.4. (a) 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 Treasury. Any amounts deposited in the Fair and Exposition Fund
pursuant to this section shall be continuously appropriated and
allocated as provided in Section 19620.2 of the Business and
Professions Code.
(b) This section shall be repealed on January 1, 2022.