BILL NUMBER: AB 1204 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JANUARY 4, 2012
INTRODUCED BY Assembly Member Dickinson
FEBRUARY 18, 2011
An act to amend Section 3312 of Sections
3301, 3321, 3322, 3331, 3332, 3351, 3352, 3354, and 3355 of, and to
repeal Section 3333 of, the Food and Agricultural Code,
relating to fairs , and making an appropriation therefor .
LEGISLATIVE COUNSEL'S DIGEST
AB 1204, as amended, Dickinson. Fairs: California Exposition and
State Fair : State Fair Leasing Authority.
(1) Existing law establishes the California Exposition and State
Fair as a separate, independent entity in state government. Existing
law provides that the governing body of the California Exposition and
State Fair shall be an 11-member board of directors. Existing law
requires the board of directors to appoint a general manager of the
California Exposition and State Fair and to submit an annual report
to the Legislature and the Governor regarding the financial
condition, present operations, and future planned activities of that
entity.
This bill would provide that the California Exposition and State
Fair general manager shall be the chief executive officer of that
entity. The bill would require the board to develop, maintain, and
comply with written policies and procedures for contracting, and
would require the board to incorporate specified policies and
procedures to apply to contracts or procurement by the California
Exposition and State Fair. The bill would delete the requirement that
the board submit the annual report described above, and would
instead require, on or before May 31 of each year, the general
manager to report to the State Fair Leasing Authority on all of the
events and operations of the California Exposition and State Fair
during that prior year and its financial condition. The bill would
require the books and accounts to be audited, as specified.
(2) Existing law sets forth the duties of the Board of Directors
of the California Exposition and State Fair. Among other duties, the
board is authorized to appoint all necessary marshals and police to
keep order and preserve peace at the California Exposition and State
Fair. The board is also authorized, with the approval of the
Department of General Services, to carry out certain functions,
including, but not limited to, purchasing, acquiring, or holding real
or personal property and beautifying or improving that property, and
to make permanent improvements upon publicly owned real property
near the California Exposition and State Fair when the improvements
materially benefit that entity's property.
This bill would require the board to delegate to the officers and
employees of the California Exposition and State Fair the independent
power to appoint all necessary peace officers for that entity. The
bill would also revise the powers of the board, as described above,
by requiring the board to obtain the approval of the State Fair
Leasing Authority, rather than the Department of General Services, to
exercise those powers, and would additionally authorize the board to
dispose of or exchange property.
(3) Existing law authorizes the authority to enter into leases or
other agreements for the use of the State Fair Race Track or any
other property owned or controlled by the California Exposition and
State Fair, as provided. Existing law requires the board to establish
and maintain a bank checking account or a savings and loan account,
continuously appropriated to the board to carry out its duties, for
the depositing of funds received by the California Exposition and
State Fair. Existing law requires that the proceeds of the sale of
any interest in real property which is owned by any association be
paid into the Fair and Exposition Fund, and be available for
expenditure by the association with the approval of the Department of
Food and Agriculture and the State Public Works Board, as specified.
The bill would require the board to establish separate accounts
for the depositing of funds received by the State Fair Leasing
Authority in the conduct of its business, and all funds maintained in
the authority accounts would be continuously appropriated to the
board or the authority to carry out their respective duties. The bill
would require that the proceeds of any lease, sale, or other
agreement become the property of the California Exposition and State
Fair and be available to the fair in perpetuity, as provided. By
increasing moneys in a continuously appropriated fund, this bill
would make an appropriation.
(4) The bill would also include a statement of legislative
findings and declarations.
Existing law provides that the governing body of the California
Exposition and State Fair shall be an 11 member board of directors
who shall be residents of California and appointed, as specified.
Existing law provides that 9 directors shall be appointed by the
Governor with the consent of the Senate and that the directors
appointed by the Governor shall have general knowledge of, interest
in, and expertise in one or more specified areas, including, among
others, fair management, the arts, education, and youth. Existing law
provides that the directors shall be appointed for 4 year terms.
This bill would provide that every director appointed pursuant to
those provisions whose term has expired shall continue to discharge
the duties of his or her office until a successor is appointed and
qualified. The bill would additionally add public relations and
marketing to the list of topics of which the Governor's appointees
are required to have knowledge of, interest in, and expertise in.
Vote: majority 2/3 . Appropriation:
no yes . Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature hereby finds and declares
all of the following:
(a) The California Exposition and State Fair each year showcases
the best of the state's agricultural, manufacturing, and arts and
science innovations, highlights the entrepreneurial character of our
state's economy, lifestyle, and culture, and provides a gathering
place for all citizens of California to celebrate the rich history of
our state and to explore the trends shaping its future.
(b) The California Exposition and State Fair is located on a
350-acre portion of the 700-acre site in the area of the City of
Sacramento known as "Point West," and it has been in this location
for over 40 years. The Board of Directors of the California
Exposition and State Fair desires to modernize and update the aging
capital facilities of the fair to alleviate the higher operating
costs resulting from deferred maintenance and to improve public
accessibility to the property. New and improved facilities will help
increase attendance and expand the number and type of exposition
events, thereby increasing revenues.
(c) The annual budget of the California Exposition and State Fair
has been substantially below the amount necessary to maintain the
fair as a first-class entertainment facility, and the annual
shortfalls have caused a growing backlog of deferred maintenance
issues that are in excess of $45 million.
(d) Therefore, it is the intent of the Legislature to provide the
Board of Directors and management of the California Exposition and
State Fair the necessary tools to improve its product, develop new
revenue streams, streamline its business operations, and create and
promote a strategy to help the California Exposition and State Fair
preserve and enhance this valuable state asset by competing more
favorably in the marketplace.
(e) When fully implemented, this legislation will create new jobs
and generate significant economic activity and state and local tax
revenues throughout the region, while additionally providing a source
of revenue for the long-term capital needs of the California
Exposition and State Fair.
SEC. 2. Section 3301 of the Food and
Agricultural Code is amended to read:
3301. It is the intent of the Legislature to vitalize
effect a reorganization of the California
Exposition and State Fair by creating a new
as a separate, independent entity in state government managed
by a board of directors with sufficient autonomy for efficient
operation balanced by appropriate state oversight. The board of
directors shall develop a policy which
establish a policy that provides managerial and fiscal
responsibility and shall work towards a goal of
in order to ensure fiscal independence from state General
Fund support. The board of directors shall develop a policy
which establish and maintain a policy that
provides for an innovative program including the concept of
an , agriculturally themed exposition
which would communicate the issues surrounding the production and
marketing of food, fiber, and plant material to the general public
and such other concepts as are feasible that
celebrates California and the diversity of its people. The California
Exposition and State Fair shall strive to showcase the state's
industries and agriculture with a program that recognizes California
traditions and explores the trends shaping its future .
SEC. 3. Section 3321 of the Food and
Agricultural Code is amended to read:
3321. The board shall appoint, pursuant to Section 4 of Article
VII of the California Constitution, a general manager of the
California Exposition and State Fair who shall be the chief
executive officer and serve at the pleasure of the board. The
term of office and duties of the general manager shall be determined
by the board.
SEC. 4. Section 3322 of the Food and
Agricultural Code is amended to read:
3322. (a) The following officers of the California Exposition and
State Fair shall be appointed by the Governor, pursuant to Section 4
of Article VII of the California Constitution, upon selection
by and recommendation of the board:
(1) Deputy general manager.
(2) Program manager.
(3) Marketing manager.
(b) The state officers appointed pursuant to subdivision (a) shall
serve at the pleasure of the board, under the direction of the
general manager.
SEC. 5. Section 3331 of the Food and
Agricultural Code is amended to read:
3331. (a) (1) The
board shall serve as the policymaking body for the California
Exposition and State Fair and shall have full responsibility for the
year-round management and operation of all facilities of the
California Exposition and State Fair in accordance with Sections
3301 and 3311 .
The
(2) The board shall provide for
an annual fair in one or more seasonal divisions
to be held in Sacramento County of the
and shall strive to showcase the agriculture and agricultural
produ cts of the state, the industries and
industrial products of the state , and the
commercial products exported and imported through the ports of the
state in accordance with Sections 3301 and 3311 . The fair
shall be designated , and may be known as, the California
State Fair.
(b) On or before May 31 of each year, the general manager of the
California Exposition and State Fair shall report to the State Fair
Leasing Authority for the immediately preceding calendar year ending
December 31 all the events and operations of the California
Exposition and State Fair during that prior year and its financial
condition. The books and accounts of the California Exposition and
State Fair for that prior calendar year shall be examined and audited
annually by an independent registered certified public accountant or
certified public accountancy firm.
SEC. 6. Section 3332 of the Food and
Agricultural Code is amended to read:
3332. The Subject only to the conditions
specified in this chapter, the board may do any of the
following:
(a) Contract . in accordance with all of
the following:
(1) The board shall develop, maintain, and comply with its own
written policies and procedures for contracting.
(2) Notwithstanding any other law, in developing the policies and
procedures referenced in paragraph (1), the board shall incorporate
the following to apply to contracts or procurement by the California
Exposition and State Fair:
(A) To ensure the fullest competition, the board shall adopt and
publish competitive bidding procedures for the award of any
procurement or contract involving an expenditure of more than one
hundred thousand dollars ($100,000). The competitive bidding
procedures shall include, but not be limited to, requirements for
submission of bids and accompanying documentation, guidelines for the
use of requests for proposals, invitations to bid, or other methods
of bidding, and a bid protest procedure. The general manager of the
fair shall determine whether the goods or services subject to this
paragraph are available through existing contracts or price schedules
of the Department of General Services.
(B) The contracting standards, procedures, and rules contained in
this subdivision shall also apply with respect to any subcontract
involving an expenditure of more than one hundred thousand dollars
($100,000). The board shall establish, as part of the bidding
procedures for general contracts, subcontracting guidelines that
implement this requirement.
(C) The board is subject to the Small Business Procurement and
Contract Act (Chapter 6.5 (commencing with Section 14835) of Part 5.5
of Division 3 of Title 2 of the Government Code).
(D) In advertising or awarding any general contract for the
procurement of goods and services exceeding one hundred thousand
dollars ($100,000), the board and the general manager shall require
all bidders or contractors, or both, to include specific plans or
arrangements to utilize subcontracts with socially and economically
disadvantaged small business entities. The subcontracting plans shall
delineate the nature and extent of the services to be utilized, and
those entities or individuals identified for subcontracting if known.
(E) (i) It is the intent of the Legislature in enacting this
section to establish as an objective of the utmost importance the
advancement of business opportunities for these small business
entities in the business activities created by the California
Exposition and State Fair. In that regard, the board shall have an
affirmative duty to achieve the most feasible and practicable level
of participation by small business entities owned by socially and
economically disadvantaged persons in its procurement programs.
(ii) For the purposes of this section, socially and economically
disadvantaged persons include women, Black Americans, Hispanic
Americans, Native Americans (including American Indians, Eskimos,
Aleuts, and Native Hawaiians), Asian-Pacific Americans (including
persons whose origins are from Japan, China, the Philippines,
Vietnam, Korea, Samoa, Guam, the United States Trust Territories of
the Pacific, Northern Marianas, Laos, Cambodia, and Taiwan), and
other minorities or any other natural persons found by the board to
be disadvantaged.
(b) Accept funds or gifts of value from the United States or any
person to aid in carrying out the purposes of this part.
(c) Conduct or contract for programs, and contract for the
purchase or lease of goods and services as are necessary for
effectuating the purposes of this chapter, either
independently or in cooperation with any individual, public or
private organization, or federal, state, or local governmental
agency.
(d) Establish and maintain a bank checking account or a savings
and loan association account, approved by the Director of Finance in
accordance with Sections 16506 and 16605 of the Government Code, for
depositing funds received by the California Exposition and State Fair
, and separate accounts for depositing funds received by the
State Fair Leasing Authority in the conduct of its business under the
provisions of this chapter . Notwithstanding Section 13340 of
the Government Code, all funds maintained in an account authorized by
this subdivision are continuously appropriated to the board or
the authority , without regard to fiscal year, to
carry out this part.
(e) Establish a program for paying vendors who contract with the
California Exposition and State Fair.
(f) Make or adopt all necessary orders, rules, or regulations for
governing the activities of the California Exposition and State Fair.
Notwithstanding Section 14, any orders, rules, or regulations
adopted by the board are exempt from Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code. For informational purposes only, however, any order, rule, or
regulation adopted by the board may be transmitted to the Office of
Administrative Law for filing with the Secretary of State pursuant to
Section 11343 of the Government Code.
(g) Delegate to the officers and employees of the California
Exposition and State Fair the independent authority to
appoint civil service personnel according to state civil service
procedures. The board may also delegate to officers and employees of
the California Exposition and State Fair the independent authority to
appoint marshals and police as authorized by
subdivision (j).
(h) Operate a payroll system for paying employees, and a system
for accounting for vacation and sick leave credits of employees.
(i) Delegate to the officers and employees of the California
Exposition and State Fair the exercise of powers vested in the board
as the board may deem desirable for the orderly management and
operation of the California Exposition and State Fair.
(j) Appoint all necessary marshals and
Delegate to the officers and employees of the California Exposition
and State Fair the independent authority to appoint all necessary
police to keep order and preserve peace at the California
Exposition and State Fair premises on a year-round basis who shall
have the powers of peace officers specified in Section 830.2 of the
Penal Code. A peace officer of the Department of the California
Highway Patrol may be employed as a peace officer while off duty from
his or her regular employment, subject to those conditions as may be
set forth by the Commissioner of the Department of the California
Highway Patrol. At least 75 percent of the persons appointed pursuant
to this subdivision shall possess the basic certificate issued by
the Commission on Peace Officers Standards and Training. The
remaining 25 percent may be appointed if the person has completed a
Peace Officer Standards and Training-certified academy, or possesses
a Level One Reserve Certificate (as defined in Section 832.6 of the
Penal Code). Of this 25 percent, any portion may be comprised of
probation officers certified under Section 832. Nothing in this
subdivision shall be construed to give probation officers appointed
pursuant to this subdivision peace officer powers pursuant to Section
830.2 of the Penal Code.
(k) With the approval of the Department of General
Services State Fair Leasing Authority ,
purchase, acquire, dispose of, exchange, or hold real or
personal property, and beautify or improve that
property. Any acquisition of land or other real property is
subject to the approval of the Department of General Services, and in
the case of the purchase of real property, is subject to the
Property Acquisition Law (Part 11 (commencing with Section 15850) of
Division 3 of Title 2 of the Government Code).
(l) With the approval of the Department of General
Services State Fair Leasing Authority , make
permanent improvements upon publicly owned real property adjacent to,
or near the vicinity of, the real property of the California
Exposition and State Fair when the improvements materially benefit
the property of the California Exposition and State Fair.
(m) Lease, with With the approval of
the Department of General Services, State
Fair Leasing Authority, lease any of its property for any
purpose for any period of time.
(n) Use or manage any of its property, with
With the approval of the Department of General
Services, State Fair Leasing Authority, use or manage
any of its property jointly or in connection with any lessee or
sublessee, for any purpose approved by the board.
(o) With the approval of the Department of General
Services State Fair Leasing Authority , pledge
any and all revenues, moneys, accounts, accounts receivable, contract
rights, and other rights to payment of whatever kind, pursuant to
such terms and conditions as are approved by the board. Any issuance
of bonds, contracts entered into, debts incurred, settlements,
judgments, or liens under this section or pursuant to Chapter 5
(commencing with Section 6500) of Division 7 of Title 1 of the
Government Code, shall not directly, indirectly, or contingently
obligate the state or any political subdivision thereof to levy or to
pledge any form of taxation therefor or to make any appropriation
for their payment. Any such bond shall contain on the face thereof a
statement to the following effect: "Neither the full faith and credit
nor the taxing power of the State of California is pledged to the
payment of the principal of, or interest on this bond."
SEC. 7. Section 3333 of the Food and
Agricultural Code is repealed.
3333. The board shall submit a report to the Legislature and
Governor on or before May 31st of each year with respect to the
financial condition, present operations, and future planned
activities of the California Exposition and State Fair.
SEC. 8. Section 3351 of the Food and
Agricultural Code is amended to read:
3351. (a) There is hereby created the State Fair Leasing
Authority, a joint powers authority formed pursuant to Chapter 5
(commencing with Section 6500) of Division 7 of Title 1 of the
Government Code, which shall be composed of the Department of Food
and Agriculture, the Department of Finance, the Department of General
Services, and the California Exposition and State Fair.
(b) For the purposes of Section 6502 of the Government Code, the
common powers to be exercised by the State Fair Leasing Authority
shall be the powers of a district agricultural association
granted by this chapter and the powers of the parties
to the agreement .
SEC. 9. Section 3352 of the Food and
Agricultural Code is amended to read:
3352. (a) The authority State Fair
Leasing Authority shall be governed by a board of directors,
which shall be composed of the Secretary of Food and Agriculture, the
Director of Finance, the Director of General Services, and four
individuals, appointed as provided in paragraph (1), who are members
of the Board of Directors of the California Exposition and State
Fair. The Treasurer and Controller shall be members of the board of
the authority only for the purposes of hearing and deciding upon
matters related to the issuance of revenue bonds pursuant to this
chapter. The Director of Finance shall serve as chairperson of the
authority. All meetings of the authority shall be open and public.
(1) Of the four appointed members of the Board of Directors of the
California Exposition and State Fair, one shall be appointed by the
Speaker of the Assembly, one shall be appointed by the Senate
Committee on Rules, and two shall be appointed by the Governor.
(2) The authority may contract with consultants as approved by the
board of the authority. The authority shall not
may use the staff of the California Exposition and State Fair as
provided in Section 3353 or may employ any other staff
necessary to carry out the purposes of this part .
(3) The general manager of the California Exposition and State
Fair may serve only in an advisory in any
capacity to the authority as determined by the chairperson
of the authority, subject to any prohibition against dual
officeholding .
(b) The authority is a "department" for the purposes of hearings
pursuant to Article 2 (commencing with Section 11180) of Chapter 2 of
Part 1 of Division 3 of Title 2 of the Government Code.
SEC. 10. Section 3354 of the Food and
Agricultural Code is amended to read:
3354. The authority may enter into leases or other agreements
in accordance with the powers and duties granted in Section
3332, except as otherwise provided in the Horse Racing Law (Chapter 4
(commencing with Section 19400) of Division 8 of the Business and
Professions Code), for the use of the State Fair Race Track or
any other property owned or controlled by the California Exposition
and State Fair which are necessary to further the purposes of
Section Sections 3331 and 3332, or
to provide horse racing at the State Fair Race Track. A lease or
agreement entered into pursuant to this section
chapter shall be on behalf of the California Exposition
and State Fair, and the State Fair shall continue in control of its
property, subject to the conditions and terms of that lease or
agreement. Notwithstanding any other law, the proceeds of any
lease, sale, or other agreement pursuant to this chapter shall become
the property of the California Exposition and State Fair and shall
be available to the fair in perpetuity for any of the purposes of
this part.
SEC. 11. Section 3355 of the Food and
Agricultural Code is amended to read:
3355. The California Exposition and State Fair , in
consultation with the authority, shall prepare a master
plan approved by the board of directors of the fair for the
long-range comprehensive development and improvement of, and
construction upon, the property of the California Exposition and
State Fair. The plan shall prescribe the amounts which may be
expended for the various features of the plan, the period authorized
for the completion of each project, and the terms of any revenue bond
financing undertaken with respect to the plan. The plan shall
require that any revenue bond financing shall be rated in one of the
four highest rating categories by two nationally recognized rating
agencies. Upon its completion, the master plan shall be submitted to
the Joint Legislative Budget Committee for review
authority for approval . The master plan is subject to
amendment by the authority, with the approval of the Board
of Directors of the California State Fair Board of
Directors of the California Exposition and State Fair, with the
approval of the authority .
SECTION 1. Section 3312 of the Food and
Agricultural Code is amended to read:
3312. (a) The governing body of the California Exposition and
State Fair shall be an 11-member board of directors. The directors
shall be residents of California and shall be appointed as follows:
(1) Nine directors shall be appointed by the Governor with the
consent of the Senate. The directors appointed by the Governor shall
have general knowledge of, interest in, and expertise in one or more
of the following areas: fair management, city or county government,
horse racing, the arts, exhibiting, the media, public relations,
education, youth, commerce and commercial products of the state,
industry and industrial products of the state, agricultural
production and forest industries, the entertainment industry,
livestock and poultry, sports, recreation, fisheries, oceanography,
organized labor, and finance, marketing, and banking.
(A) Five of the directors appointed by the Governor shall be
knowledgeable in the production, processing, or marketing of
agricultural products and may be appointed from lists of nominees
submitted for consideration to the Governor from California
agricultural organizations, district agricultural associations, and
county and citrus fruit fairs.
(B) One of the directors appointed by the Governor shall be a
public member.
(C) Three of the directors appointed by the Governor shall be
representative, to the extent possible, of areas of knowledge,
interest, and expertise enumerated in paragraph (1).
(2) One director shall be appointed by the Speaker of the Assembly
and one director shall be appointed by the Senate Committee on
Rules. These persons shall be representative, to the extent possible,
of areas of knowledge, interest, and expertise enumerated in
paragraph (1).
(b) The directors shall be appointed for four-year terms. The
appointing authority shall appoint directors to fill vacancies which
occur during a term, and the appointments shall be for the remainder
of the unexpired term.
(c) Notwithstanding Section 1774 of the Government Code or any
other provision of law, every director appointed pursuant to this
section whose term has expired shall continue to discharge the duties
of his or her office until a successor is appointed and qualified.