BILL ANALYSIS
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THIRD READING
Bill No: SB 1085
Author: Runner (R), et al
Amended: 5/28/10
Vote: 21
SENATE FOOD AND AGRICULTURE COMMITTEE : 4-0, 4/20/10
AYES: Florez, Hancock, Hollingsworth, Wolk
NO VOTE RECORDED: Maldonado
SENATE APPROPRIATIONS COMMITTEE : 10-0, 05/27/10
AYES: Kehoe, Alquist, Corbett, Denham, Leno, Price,
Walters, Wolk, Wyland, Yee
NO VOTE RECORDED: Cox
SUBJECT : 50th District Agricultural Association:
Antelope Valley Fair:
lease
SOURCE : 50th District Agricultural Association
DIGEST : This bill permits a nonprofit organization to
hold an annual fair in lieu of the annual fair held by the
50th District Agricultural Association (50th DAA), with the
consent of the Secretary of Food and Agriculture (CDFA).
This bill permits the Director of the Department of General
Services (DGS), with the consent of, and on terms approved
by, the Secretary, to lease to the nonprofit organization,
at fair market value, the premises known as the Antelope
Valley Fair for a period not to exceed 99 years. This bill
requires the 50th DAA, during the period that the lease is
CONTINUED
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in effect, to be inactive and not have any powers or
duties. This bill permits employees of the 50th DAA to
make an election concerning employment with the nonprofit
lessee of those premises, as provided. This bill also
provides that the nonprofit organization may elect to be a
member of the network of California fairs on terms and
conditions mutually agreed upon by the DFA and the
nonprofit organization.
ANALYSIS : Under existing law, the 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 all 54 DAAs
be transformed into public benefit corporations.
This bill:
1.Authorizes, with the approval of CDFA, a nonprofit
organization to hold an annual fair in lieu of an annual
fair held by the 50th DAA.
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2.Authorizes the nonprofit to receive state funds.
3.Authorizes DGS 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.
4.Specifies that the 50th DAA shall be inactive while the
lease is in effect.
5.Requires the lease to be at fair market value of the
property.
6.Specifies that if the nonprofit fails to hold an annual
fair the lease may be cancelled.
7.Provides 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.
8.Specifies that the state is not liable for any debts,
liabilities, settlements, liens, or other obligations
incurred or imposed upon the nonprofit organization.
Prior Legislation
SB 1436 (Thompson), Chapter 259, Statutes of 1998, allows
the Director of DGS, with the consent of the Secretary of
State and Consumer Services Agency, 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 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 State Fair at Cal
Expo.
In 2006, SB 1041 (Denham) would have transferred, from DGS
to CDFA, the responsibility to annually prepare a program
for DAAs for delegating purchasing authority to the DAAs.
(Died in Assembly Appropriations Committee)
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FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13
Fund
Long term lease of state Unknown
revenue from leasing at market
Special*
property value
Lease negotiation Likely minor
cost, one time
Special*
* Fair and Exposition Fund
SUPPORT : (Verified 5/27/10)
50th District Agricultural Association (source)
Antelope Valley Chamber of Commerce
California Horse Council
H.W. Hunter, Inc.
Michael Antonovich, Los Angeles County Supervisor
Rex Parris, Mayor, City of Lancaster
Stone Roofing Company
The Showdown
Western Fairs Association
Western Pacific Roofing Corporation
ARGUMENTS IN SUPPORT : Supporters of this bill 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 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, this bill would help the
Antelope Valley Fair operate more successfully.
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TSM:nl 5/28/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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