BILL ANALYSIS �
SENATE AGRICULTURE COMMITTEE
Senator Anthony Cannella, Chairman
BILL NO: SB 1253 HEARING: 04/17/12
AUTHOR: Runner FISCAL: Yes
VERSION: 02/23/12 CONSULTANT: John Chandler
28th District Agricultural Association: joint powers agreement.
BACKGROUND AND EXISTING LAW
California Department of Food and Agriculture (CDFA), Division
of Fairs and Expositions (DFE) is responsible for overseeing the
54 District Agriculture Associations (DAA) throughout the state
that make up the California network of fairs. Each DAA 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. DAAs contribute a great deal to
the state of California. They offer an opportunity for the
local community to highlight its achievements, and in many
cases, they recognize the agriculture of the local area.
The 28th DAA encompasses the county of San Bernardino and is
located in Victorville, California. Founded in 1946 on land
donated by local residents, the 28th DAA is the last California
fair operated along Route 66. The 28th DAA holds approximately
75-80 events annually and a nine-day county fair at the end of
May. Historically, about 10-12% of the 28th DAA budget was
state funds with the rest collected from fair and event income.
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.
The 2011-2012 Budget eliminated all state funding, $32 million,
for California DAAs. The Governor ordered CDFA to form a
working group to develop a new fair governance and funding plan
for DAAs. While the group has held meetings, no plan or
suggested restructuring has been presented to the legislature
from this working group to date.
The Antelope Valley Fair, 50th DAA, transitioned to a Joint
Powers Agency (JPA) in 2011 following the passage of SB 1085
(Runner) Chapter 320, Statutes of 2010, which authorized the
formation of the JPA to operate the fair.
California Government Code (Sections 6500-536) allows the
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formation of a Joint Powers Association in which two or more
public agencies that share a common power enter into a formal
and legal agreement to jointly implement programs, deliver
services, or develop infrastructure.
SB 1436 (Thompson), Chapter 259, Statutes of 1998, allows the
Director of the Department of General Services (DGS), with the
consent of the Secretary of State and Consumer Services Agency,
to lease the Napa Valley Expo in Napa County for up to 99 years
to a nonprofit organization to operate an annual fair in lieu of
the fair held by the 25th District Agricultural Association.
SB 1041 (Denham) of 2006 would have transferred, from DGS to
CDFA, the responsibility to annually prepare a program for DAAs
for delegating purchasing authority to the DAAs. (Died in
Assembly Appropriations Committee)
SB 281 (Maldonado), Chapter 346, Statutes of 2007, requires CDFA
to develop, upon approval of DGS, criteria to be used for the
purchase of goods and the disposal of property by a district
agricultural association and the State Fair at Cal Expo.
AB 2250 (Sharon Runner) Chapter 452, Statutes of 2008, allows
state officers and employees of DAAs to receive compensation
from nonprofit corporations, as specified.
SB 1085 (Runner), Chapter 320, Statutes of 2010, allows the
50th District Agricultural Association (DAA), with the consent
of the Secretary of California Department of Food and
Agriculture, to enter into a joint powers agreement with a Joint
Powers Authority for the purpose of operating, maintaining and
improving the 50th DAA.
PROPOSED LAW
SB 1253 will do the following:
Allow the 28th DAA to enter into a Joint Powers Agency
(JPA) to operate, maintain and improve the 28th DAA.
Allow 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 28th DAA.
Allow the JPA to enter into contracts and hire
employees.
SB 1253 - Page 3
Allow the JPA to manage maintain, and operate the
facilities, or enter into management contracts for the
operation of the 28th DAA facilities.
Require any planning, designing, and constructing of
improvements to be in accordance with the powers of the
JPA.
Provide that every civil service employee of the 28th
DAA have an option to remain in state employment under
contract to the JPA or accept a position as an employee of
the JPA.
Require that any entity the JPA contracts with to manage
the 28th DAA to allow every civil service employee of the
28th 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. Allow the JPA to fill a vacant civil
service position with a non-civil service employee.
Specify that the state is not liable for any debts,
liabilities, settlements, liens, or other obligations
incurred by or imposed upon the JPA.
Specify 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.
COMMENTS
1.According to the author, SB 1253 would allow the 28th DAA to
operate free of the constraints created by state bureaucracy
and provide a higher level of accountability at a local level.
Further, this bill would allow the operation of the fair to
be closely aligned with local government, helping the fair to
better reflect the local area. With the elimination of state
funding to California fairs, the 28th DAA anticipates
unsustainable annual losses of 8-10% under the current state
governance structure. With greater efficiency and closer
links to local government, SB 1253 would help the 28th DAA
operate more successfully.
2.Opponents of SB 1253 feel this bill may be premature. In the
2011-2012 budget the governor instructed CDFA to develop a
plan for the future operation and maintenance of the Network
of California Fairs. CDFA convened a group of stakeholders in
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2011, which delivered an informal draft comprehensive plan for
the fairs to the Governor. The opposition asks that the
legislature should hold off on SB 1253 until the governor
introduces his comprehensive plan.
3.This bill authorizes the 28th DAA to transition to a JPA,
which would be a formal, legal agreement between two or more
public agencies for the operation of the fair. This bill does
not specify which agencies would join the JPA. The committee
may wish to consider if the bill should specify which public
agencies would join the JPA and how it would manage the
state's asset.
4.Senate Engrossing and Enrolling suggests a technical amendment
to SB 1253. On page 2 line 15 move section 4165 ahead of
Section 4175 so the sections are referenced in chronological
order in the bill.
SUPPORT
Coldwell Banker Commercial
Hesperia Recreation and Park District
1 individual
OPPOSITION
SEIU Local 1000