BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1085
                                                                  Page  1

          Date of Hearing:   June 30, 2010

                          ASSEMBLY COMMITTEE ON AGRICULTURE
                              Cathleen Galgiani, Chair
                    SB 1085 (Runner) - As Amended:  June 28, 2010 

           SENATE VOTE  :  35-0
           
          SUBJECT  :  50th District Agricultural Association: Antelope  
          Valley Fair: lease.

           SUMMARY  :  Allows the 50th District Agricultural Association  
          (DAA), with the consent of the Secretary (secretary) of  
          California Department of Food and Agriculture (CDFA), to enter  
          into a joint powers agreement with a Joint Powers Authority  
          (JPA) with the purpose of operating, maintaining and improving  
          the 50th DAA.  Specifically,  this bill  :   

          1.Allows the 50th DAA to enter into a JPA to operate, maintain  
            and improve the 50th DAA.

          2.Allows the JPA to accept donation of, acquire, own, sell or  
            lease, real property and offer bonds for the purpose of  
            improving the facilities at the 50th DAA.

          3.Allows the JPA to enter into contracts and hire employees.

          4.Allows the JPA to manage or enter into management contracts  
            for the operation of the50th DAA facilities.

          5.Requires any planning, designing, and construction of  
            improvements be in accordance with the powers of the JPA.

          6.Provides that every civil service employee of the 50th DAA  
            have an option to remain in state employment under contract to  
            the JPA or accept a position as an employee of the JPA.  

          7.Requires that any entity the JPA contracts with, to manage the  
            50th DAA, allows every civil service employee of the 50th DAA  
            to have an option to remain in state employment under contract  
            to the JPA or accept a position as an employee of the JPA.   
            Allows the JPA to fill a vacant civil service position with a  
            non-civil service employee.

          8.Specifies that the state is not liable for any debts,  








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            liabilities, settlements, liens, or other obligations incurred  
            or imposed upon the JPA.

          9.Specifies that the JPA may be referred to as part of the  
            network of California fairs and may elect to be a member of  
            the network of California fairs, with the mutual consent of  
            CDFA and the JPA. 

           EXISTING LAW  creates 54 DAAs in the state, with the powers and  
          duties to run county fairs. (Food and Agriculture Code (FAC)  
          Section 3801-4060)

          Allows for the formation of JPA for the purpose of two or more  
          public agencies, by agreement, to jointly exercise any power  
          common to the contracting parties. (Government Code Section  
          6500-6536)

          Allows the 25th DAA in Napa County to enter into a JPA with the  
          City of Napa for the purpose of establishing and operating a  
          Napa Center for Wine, Food, and the Arts facility.  (FAC section  
          4161-4162)

          Allows that, with the consent of the secretary, a nonprofit  
          organization may hold an annual fair in lieu of the annual fair  
          held by the 25th DAA, as specified.  Allows the 25th DAA to  
          lease the fairground to a nonprofit organization for up to 99  
          years. (FAC section 4163)

           FISCAL EFFECT  :  This bill has been keyed fiscal by Legislative  
          Counsel.

           COMMENTS  :  In 1938, local farmers and businesses purchased 80  
          acres of land in Lancaster to create a local fair.  In 1941, the  
          Fair Association donated the grounds to the state and this  
          became the 50th DAA, also known as the Antelope Valley (AV)  
          Fair.  In 2003, the 50th DAA relocated to new fairgrounds,  
          becoming the first fair to build new facilities in the last 45  
          years.  According to the author, this feat was partially  
          accomplished because of the AV Fair's close relationship with  
          the City of Lancaster.  

          Supporters state this bill is needed to create greater  
          efficiencies and transfer control of the 50th DAA to a JPA  
          closely aligned with local government.  This new entity will  
          allow the AV fair to operate free of the constraints created by  








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          state bureaucracy.  The 50th DAA believes that forming a JPA  
          with closer ties to local government will enable the AV Fair to  
          operate more efficiently and with greater flexibility.

          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.  

          According to a recent news article, Bill Leonard, the State and  
          Consumer Services Agency Secretary, announced the deal that  
          would transfer the fairgrounds in Costa Mesa to the newly formed  
          Orange County Fairgrounds Authority, jointly owned by the City  
          of Costa Mesa and the Costa Mesa Public Finance Authority.

          Both the author and the 50th DAA have expressed the success of  
          the AV fair and the close working relationship that already  
          exists with the City of Lancaster, as evidenced by the move to a  
          new location in 2003.  The committee may wish to consider what  
          is the pressing need for shifting this successful fair to a JPA?

           PRIOR LEGISLATION:
           
          AB 2250 (Sharon Runner) Chapter 452, Statutes of 2008, allowed  
          state officers and employees of DAAs to receive compensation  
          from nonprofit corporations, as specified.

          SB 281 (Maldonado) Chapter 346, Statutes of 2007, required CDFA  
          to develop criteria, subject to the approval of the Department  
          of General Services (DGS), for the disposal of property by the  
          DAA and the California Exposition and State Fair.

          SB 1041 (Denham) of 2006 would have transferred, from DGS to  
          CDFA, the responsibility to annually prepare a program for the  
          DAA for delegating purchasing authority to the DAA.  This bill  
          was held in the Assembly Appropriations Committee.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          50th District Agriculture Association - Antelope Valley Fair  
          (Sponsor)
          Antelope Valley Chamber of Commerce








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          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
            3 individuals

           Opposition 
           
          None on file.

           Analysis Prepared by  :    Victor Francovich / AGRI. / (916)  
          319-2084