BILL ANALYSIS �
SENATE AGRICULTURE COMMITTEE
Senator Anthony Cannella, Chairman
BILL NO: SB 899 HEARING: 05/03/11
AUTHOR: LaMalfa FISCAL: Yes
VERSION: 03/24/11 CONSULTANT: John Chandler
District agricultural associations.
BACKGROUND AND EXISTING LAW
Over 140 years ago, California began organizing what is today
one of the largest fair systems in the nation. The 54 district
agricultural associations (DAAs), also known as state agency
fairs, are managed under the California Department of Food and
Agriculture (CDFA) in the Division of Fairs and Expositions.
Each fair 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.
The Department of General Services (DGS) and CDFA have the
authority over DAA's ability to enter or engage in contracts,
and purchase, convey, sell, or lease property. Most state
agencies are required to follow the State Administrative Manual
(SAM) which uniformly states policy on how state agencies
purchase goods, budget, and administer human resources.
SB 1041 (Denham) in 2006 would transfer the responsibility to
prepare an annual program delegating purchasing authority from
DGS to CDFA. This bill was held in the Assembly Appropriations
Committee.
SB 281 (Maldonado, Chapter 346, Statutes of 2007), established
criteria, separate from general state requirements, that are
applicable to the disposal of personal property by district
agricultural associations (DAAs or county fairs) and the
California Exposition and State Fair (CalExpo).
PROPOSED LAW
SB 899 would eliminate the requirement for DGS approval for a
DAA to enter or engage in contracts, and purchase, convey,
sell, or lease property.
COMMENTS
1.According to the author, the network of California fairs
provides vital community services, support and promote the
welfare of the local community, host entertainment events, and
SB 899 - Page 2
provide emergency services during disaster relief. During the
Japanese tsunami threat to California's coastal communities,
the local fairs were able to provide refuge for both livestock
and residents away from the tsunami threat. The 2011-2012
state budget bill AB 95 eliminates 100% of state fair funding,
$32 million annual appropriation, requiring a greater need for
operational efficiency of California fairs. SB 899 would help
free fairs from a costly impediment by removing the need for
DGS approval for contracting, and purchasing conveying,
selling or leasing property. This would allow fairs greater
flexibility to take advantage of local business opportunities
without having to wait for approvals from Sacramento.
2.SB 899 is only a partial solution to a much larger struggle
for California's DAAs. With the loss of state funding, DAAs
are seeking savings and efficiencies wherever possible. The
full benefit and cost to the state and to DAAs of removing DGS
from the approval process for contracts and property issues is
not clear. It is expected that SB 899 may evolve into a more
substantial bill to help save California fairs.
SUPPORT
Western Fairs Association
OPPOSITION
None received