BILL ANALYSIS
SENATE FOOD and AGRICULTURE COMMITTEE
Senator Dean Florez, Chairman
BILL NO: SB 1085 HEARING: 4/20/10
AUTHOR: Runner FISCAL: Yes
VERSION: 2/17/10 CONSULTANT: John Chandler
50th District Agricultural Association: Antelope Valley Fair:
lease.
BACKGROUND AND EXISTING LAW
California Department of Food and Agriculture (CDFA), Division
of Fairs and Expositions (DFE) is responsible for overseeing the
54 District Agriculture Associations (DAA) throughout the state
that make up the California network of fairs. Each DAA 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. DAAs 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.
The Antelope Valley Fair Association was incorporated on
September 12, 1938, and operated locally for three years. On
September 13, 1941, the Antelope Valley Fair became the 50th DAA
with the donation of the land to the state. The 50th DAA is
located in the northern part of Los Angeles County in the City
of Lancaster. Working with the City of Lancaster, the 50th DAA
was relocated to a new site in 2003. In the current fiscal
year, the 50th DAA generated $4.7 million in revenue and only
received approximately $25,000 from the Fairs and Exposition
Fund.
The Governor's 2004 California Performance Review proposed to
help refocus government on essential functions and redirect
functions to cooperative public-private ventures. As part of
this review, it was suggested that the 54 DAAs be transformed
into public benefit corporations.
SB 1436 (Thompson), Chapter 259, Statutes of 1998, allows the
Director of General Services (DGS), with the consent of the
Secretary of State and Consumer Services, to lease the Napa
Valley Expo in Napa County for up to 99 years to a nonprofit
organization to operate an annual fair in lieu of the fair held
by the 25th District Agricultural Association.
SB 281 (Maldonado), Chapter 346, Statutes of 2007, requires CDFA
SB 1085 - Page 2
to develop, upon approval of DGS, criteria to be used for the
purchase of goods and the disposal of property by a district
agricultural association and Cal Expo.
In 2006, SB 1041 (Denham) would have transferred, from the
Department of General Services (DGS) to CDFA, the responsibility
to annually prepare a program for DAAs for delegating purchasing
authority to the DAAs. This bill was held in the Assembly
Appropriations Committee.
PROPOSED LAW
SB 1085 would authorize, with the approval of CDFA, a nonprofit
organization to hold an annual fair in lieu of an annual fair
held by the 50th DAA. Specifically, this bill would:
Authorize the nonprofit to receive state funds.
Authorize Department of General Services to lease the
property of the 50th DAA, with the consent of CDFA, for up
to 99 years to a nonprofit to hold an annual fair.
Specify that the 50th DAA would be inactive while the
lease is in effect.
Allow the lease to be for less than market value of the
property.
Specify that if the nonprofit fails to hold an annual
fair the lease may be cancelled.
Provide that every civil service member of the 50th DAA
have an option to remain in state employment under contract
to the leasing nonprofit or accept a position as an
employee of the leasing nonprofit organization.
Specify that the state is not liable for any debts,
liabilities, settlements, liens, or other obligations
incurred or imposed upon the nonprofit organization.
COMMENTS
1.Supporters of SB 1085 state that the lease of the 50th DAA to
a nonprofit for operation of the annual fair would allow
greater efficiency by removing the constraints created by the
SB 1085 - Page 3
state bureaucracy. Further, this bill would allow the
operation of the fair to be closely aligned with local
government, helping the fair to better reflect the local area.
With greater efficiency and closer links to local government,
SB 1085 would help the Antelope Valley Fair operate more
successfully.
2.The Business and Professions Code specifies that the 50th DAA
is included in the "network of California fairs." SB 1085
allows the 50th DAA to be leased to a nonprofit for the
operation of an annual fair. During this lease, the 50th DAA
would revert to inactive status. This change could
potentially remove the Antelope Valley Fair from the "network
of California fairs." The committee may wish to consider if
the bill should include a provision allowing the Antelope
Valley Fair to be part of the network of California fairs if
it is leased by a nonprofit to operate an annual fair.
SUPPORT
50th District Agricultural Association
Antelope Valley Chamber of Commerce
California Horse Council
Dawn Babers
Don Jesser
H.W. Hunter, Inc.
Johnny Zamrzla
Michael Antonovich, Los Angeles County Supervisor
Rex Parris, Mayor, City of Lancaster
Stone Roofing Company
The Showdown
Western Fairs Association
Western Pacific Roofing Corporation
OPPOSITION
None received