BILL NUMBER: AB 2345 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Ma
FEBRUARY 24, 2012
An act to add Part 6 (commencing with Section 4801) to
Division 3 of the Food and Agricultural Code, relating to
fairs.
LEGISLATIVE COUNSEL'S DIGEST
AB 2345, as amended, Ma. Fairs: sustainability.
Existing law governs fairs and expositions in this state,
including the California Exposition and State Fair, county and
district fairs, and citrus fruit fairs. Existing law divides the
state into agricultural districts and authorizes 50 or more persons
who are residents of a district to form district agricultural
associations for the purpose of holding fairs, expositions, and
exhibitions, as specified. Existing law provides that district
agricultural associations are state institutions and are governed by
a board of directors whose members are appointed by the Governor.
Existing law authorizes an association to carry out specified duties
with the approval of the Department of Food and Agriculture and the
Department of General Services, including contracting and leasing its
real property.
Existing law establishes the Fair and Exposition Fund. Existing
law provides for the deposit of various funds, including license fees
from various activities related to horse racing, including satellite
wagering, into the fund. Existing law authorizes the Department of
Food and Agriculture to make and administer loans from the fund to
any fair in the network of California fairs, as specified.
This bill would express the intent of the Legislature to
enact legislation to ensure the sustainability of the network of
California fairs establish the California Fair Network
Commission as a separate, independent nonprofit mutual benefit
corporation to assess the fairs fees for service and administrative
oversight, as specified. The bill would authorize the commission to
employ staff who are employees of the commission and would require
the commission to adopt procedures concerning the operation of the
commission. The bill would set forth a related statemen t
of legislative findings and declarations .
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Part 6 (commencing with Section 4801)
is added to Division 3 of the Food and Agricultural Code
, to read:
PART 6. California Fair Network Commission
CHAPTER 1. FINDINGS AND DECLARATIONS
4801. The Legislature hereby finds and declares all of the
following:
(a) The network of California fairs is a unique cultural,
commercial, and agricultural resource that requires preservation and
protection for future generations.
(b) California's network of fairs is the largest in the nation and
includes 72 fairgrounds which showcase and support California
agriculture, provide entertainment for millions of Californians, and
provide resources, facilities, and places of sanctuary during times
of natural emergency.
(c) California's network of fairs hosts more than 30,000,000
visitors annually and provides an important tourism attraction for
this state.
(d) California's network of fairs generates over $165,000,000 in
tax revenue to state and local government and provides 30,000 jobs
for Californians.
(e) The budget for California's network of fairs has not kept pace
with the state's population growth and growing demand. The annual
budget for fairs has been significantly below the amount necessary to
maintain the fairgrounds, resulting in a significant backlog of
deferred maintenance, inadequate staffing, and the failure to protect
fair resources and maintain fair facilities as necessary to enable
the fairs to carry out their mission of public service.
(f) Current declining budget resources will force the closure of
fairs throughout the state, result in the loss of jobs, and diminish
the utility of fairgrounds as staging areas for emergency responders.
(g) It is in the public interest that California's network of
fairs continues to promote agriculture and commerce, provide jobs,
and provide facilities for emergency services during times of natural
disaster.
(h) State funding, while an important component of California's
network of fairs, is no longer sufficient to meet the threshold
levels of funding necessary to maintain and operate the fair network.
(i) For a period of three years, while fairs transition away from
state funding, it will be necessary for the state to provide minimal
levels of funding to California's network of fairs to ensure a smooth
and financially viable transition. In that regard:
(1) It is in the state's public interest and vital to the welfare
of the state's economy to improve the fair's facilities and expand
access to California's network of fairs through a cooperative
partnership funded in part by the state that will allow for a new
generation of fairs to exist in California.
(2) The mechanism established by this part is intended to play a
unique role in advancing the opportunity to expand and improve
California's network of fairs, and is intended to increase the
opportunity for Californians to benefit from the network and the
industry that supports the network.
(3) Programs implemented pursuant to this part are intended to
augment and enhance the marketing activities of individual fairs
within the network.
(4) While it is recognized that smaller fairs throughout the
network often lack the resources or market power to conduct certain
activities on their own, the programs are intended to be of benefit
to fairs of all sizes.
(5) These programs are not intended to, and they do not, impede
the right or ability of any fair to conduct activities designed to
increase the market generally or their own respective shares of the
California network of fairs, and nothing in the mechanism established
by this part shall prevent an individual fair in the network from
seeking to expand its market through alternative or complementary
means, or both.
(6) This part creates a mechanism to fund oversight of the network
and promotions that, pursuant to the required supervision and
oversight of the secretary as specified in this part, further
specific governmental goals, as established by the Legislature, and
result in a program that provides uniformity in regulation and
oversight and opportunities for growth of the entire network.
(7) The programs implemented pursuant to this part shall be
carried out in an effective and coordinated manner that is designed
to strengthen California's network of fairs, local communities, and
the state's economy as a whole.
(8) Independent evaluation of the effectiveness of the programs
will assist the Legislature in ensuring the objectives of the
programs as set out in this section are met.
CHAPTER 2. DEFINITIONS
4802. Unless the context otherwise requires, the definitions in
this section govern the construction of this part.
(a) "Commission" means the California Fair Network Commission.
(b) "Department" means the Department of Food and Agriculture.
(c) "Fair" means a state designated fair as defined in Section
19418 of the Business and Professions Code.
(d) "Network" means the network of California fairs.
(e) "Person" means an individual, public entity, firm,
corporation, association, or any other business unit, whether
operating on a for-profit or nonprofit basis.
(f) "Secretary" means the Secretary of Food and Agriculture.
CHAPTER 3. THE CALIFORNIA FAIR NETWORK COMMISSION
4803. (a) (1) The Legislature finds and declares that the
commission, in consultation with the secretary, is responsible for
ensuring the integrity of the Fair and Exposition Fund, administering
allocations from the fund to the network of California fairs and
providing oversight of activities carried out by each California
fair.
(2) Oversight shall include, but not be limited to, the following:
(A) Monitoring the solvency of the Fair and Exposition Fund.
(B) Distributing available state resources to the network of
California fairs based on criteria for state allocations developed by
the commission and approved by the secretary. The criteria for the
distribution of available state resources to the network of
California fairs shall not include a consideration of the structure
that governs the fair.
(C) Creating a framework for administration of the network of
California fairs allowing for maximum autonomy and local
decisionmaking authority, and conducting, or causing to be conducted,
annual fiscal audits and periodic compliance audits.
(D) Guiding and providing incentives to fairs to seek matching
funds and generate new revenue from a variety of sources.
(E) Supporting continuous improvement of fair programming to
ensure that California fairs remain highly relevant community
institutions.
(F) Developing protocols and procedures for contract
administration and approval, insurance compliance, and other
administrative functions.
(b) The commission may assess fairs fees for services and
administrative oversight to include the costs of budget
administration, contract approval, pooled insurance, construction and
planning services, and other costs as determined by the commission.
4804. (a) The commission is a separate, independent California
nonprofit mutual benefit corporation. The staff of the commission
shall be employees solely of the commission. The procedures adopted
by the commission shall not be subject to the Administrative
Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code).
(b) Not later than six months following the date of the enactment
of this part, the commission shall adopt procedures concerning the
operation of the commission.
(c) If the commission fails to adopt the procedures described in
subdivision (b) within the specified timeframe, the secretary shall
adopt procedures for use by the commission until the commission
adopts its own procedures. These procedures shall be exempt from the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code),
whether adopted by the commission or the secretary.
4805. (a) The commission shall be administered by an executive
director. That individual shall be a fair industry professional,
recommended by a vote of the commissioners and approved by the
Governor. The executive director shall serve at the pleasure of the
commissioners.
(b) The executive director shall report to and receive overall
guidance from the commission, and shall implement the commission's
business plan. The executive director shall report to the secretary
for day-to-day managerial and financial responsibilities.
(c) The salary and benefits of the executive director shall be
determined by the commission, and approved by the secretary, based
upon industry standards for a fair industry executive with a budget
of similar size. The entire salary and all benefits of the executive
director shall be paid from commission revenues.
CHAPTER 4. DUTIES AND POWERS OF THE COMMISSION
4809. The following powers, and any other powers provided in this
act, shall be the responsibility of the secretary and, when not
exercised by the secretary, may be exercised by the commission:
(a) Collect and deposit revenues.
(b) All of the powers and duties stipulated in Section 4803.
SECTION 1. It is the intent of the Legislature
to enact legislation to ensure the sustainability of the network of
California fairs.