BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
SB 899 (La Malfa)
Hearing Date: 5/26/2011 Amended: 5/17/2011
Consultant: Bob Franzoia Policy Vote: Agriculture 6-0
_________________________________________________________________
____
BILL SUMMARY: SB 899 would delete the duty of the Department of
Food and Agriculture (department) to conduct fiscal and
performance audits of county fairs. This bill would permit
discretionary audits as determined by the county fair and the
county board of supervisors.
_________________________________________________________________
____
Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Discretionary audits No new costs; significant savings
overGeneral/
existing department audit
requirementsSpecial*
* Department of Food and Agriculture Fund
_________________________________________________________________
____
STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
Under existing law, the department is responsible for, among
other things, ensuring the integrity of the Fair and Exposition
Fund and providing oversight of activities carried out by each
California fair. That oversight includes conducting fiscal and
performance audits of county fairs and citrus fairs that are
requested by the fair that is the subject of the audit, and that
the department deems to be necessary. Preliminary information
indicates department compliance audit costs for county fairs
average $10,013 (two fairs), audit costs for county and citrus
fairs average $13,853 and fiscal and compliance audit costs
average $14,813.
The May Revise noted the following: ?The Secretary of Food and
Agriculture will develop a plan to be included in the Governor's
SB 899 (La Malfa)
Page 1
2012-13 Budget, addressing the future operation, maintenance,
and oversight of the Network of California Fairs, including real
and personal property and the feasibility to restructure the
governance of the fairs within this network.
This bill, as proposed to be amended, would strike out the
contents and add:
SECTION 1. Business and Professions Code 19620 is amended to
read:
(a) The Legislature finds and declares that the Department of
Food and Agriculture is responsible for ensuring the integrity
of the Fair and Exposition Fund, administering allocations from
the fund to the network of California fairs, as defined in
Sections 19418 to 19418.3, inclusive, and providing oversight of
activities carried out by each California fair.
(b) Oversight shall include, but not be limited to, the
following:
(1) Monitoring the solvency of the Fair and Exposition Fund.
(2) Distributing available state resources to the network of
California fairs based on criteria for state allocations
approved by the Secretary of Food and Agriculture. 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.
(3) Creating a framework for administration of the network of
California fairs allowing for maximum autonomy and local
decision making authority, and conducting, or causing to be
conducted, annual fiscal audits and periodic compliance audits.
(4) Conducting fiscal and performance audits of county fairs and
citrus fruit fairs that are requested by the fair that is the
subject of the audit, and that the Department of Food and
Agriculture deems to be necessary.
(5) Guiding and providing incentives to fairs to seek matching
funds and generate new revenue from a variety of sources.
(6) Supporting continuous improvement of fair programming to
ensure that California fairs remain highly relevant community
institutions.
state resources to the network of California fairs shall not
include a consideration of the structure that governs the fair.
(3) Creating a framework for administration of the network of
SB 899 (La Malfa)
Page 2
California fairs allowing for maximum autonomy and local
decision making authority, and conducting, or causing to be
conducted, annual fiscal audits and periodic compliance audits.
(4) Conducting fiscal and performance audits of county fairs
and citrus fruit fairs that are requested by the fair that is
the subject of the audit, except in instances where the fair and
the Department concur that an independent registered certified
public accountant may be contracted for this purpose in
accordance with Section 3205 of the Food and Agricultural Code,
and that the Department of Food and Agriculture deems to be
necessary.
(5) Guiding and providing incentives to fairs to seek
matching funds and generate new revenue from a variety of
sources.
(6) Supporting continuous improvement of fair programming to
ensure that California fairs remain highly relevant community
institutions.
SEC. 2. Business and Professions Code 19620.1 is amended to
read:
From the total revenue received by the department, exclusive of
money received pursuant to Sections 19640 and 19641, the
Legislature shall annually appropriate to the department those
sums as it deems necessary for the following purposes:
(a) For the oversight of the network of California fairs
receiving money from the fund.
(b) For the auditing of all district agricultural association
fairs , county fairs, and citrus fruit fairs.
(c) County fairs may audit as determined by the county fair and
the county board of supervisors and may report the audit
findings to the department.