BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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                                 THIRD READING


          Bill No:  SB 1253
          Author:   Runner (R)
          Amended:  As introduced
          Vote:     21

           
           SENATE AGRICULTURE COMMITTEE  :  6-0, 4/17/12
          AYES:  Cannella, Rubio, Berryhill, La Malfa, Vargas, Wolk
          NO VOTE RECORDED:  Evans

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    28th District Agricultural Association:  joint 
          powers 
                      agreement

           SOURCE  :     28th District Agricultural Association (SBC 
          Fair)


           DIGEST  :    This bill (1) authorizes the 28th District 
          Agricultural Association (DAA) to enter into a joint powers 
          agreement for the purpose of creating a joint powers agency 
          (JPA), (2) specifies the powers and authority of the JPA, 
          (3) permits employees of the 28th DAA to make an election 
          concerning employment with the JPA, as provided, (4) 
          provides that the state is not liable for any debt of the 
          JPA, (5) provides that the JPA for the 28th DAA may elect 
          to be a member of the network of California fairs on terms 
          and conditions mutually agreed upon by the Department of 
          Food and Agriculture and the JPA.

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           ANALYSIS  :    Existing law provides that the 28th DAA is San 
          Bernardino County.  Existing law authorizes a nonprofit 
          organization or a JPA holding an annual fair, as specified, 
          to elect to be a member of the network of California fairs 
          on conditions mutually agreed upon by the Department of 
          Food and Agriculture (DFA) and the nonprofit organization.

          This bill:

          1. Allows the 28th DAA to enter into a joint powers 
             agreement to create a JPA to operate, maintain and 
             improve the 28th DAA. 

          2. Specifies the powers of the JPA and authorizing it 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. 

          3. Allows the JPA to (a) make and enter into contracts and 
             hire employees, and (b) manage maintain, and operate the 
             facilities, or enter into management contracts for the 
             operation of the 28th DAA facilities.

          4. Requires any planning, designing, and constructing of 
             facility improvements to be in accordance with the 
             powers of the JPA. 

          5. Provides 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. 

          6. Requires 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.  Allows the JPA to 
             fill a vacant civil service position with a non-civil 
             service employee. 

          7. Specifies that the state is not liable for any debts, 
             liabilities, settlements, liens, or other obligations 
             incurred by or imposed upon the JPA. 


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          8. Specifies 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 DFA and the JPA. 

           Background  

          The DFA, Division of Fairs and Expositions is responsible 
          for overseeing the state's 54 DAAs that make up the 
          "network of California fairs".  The 28th DAA is located in 
          San Bernardino County with the fairgrounds situated in the 
          City of Victorville.  The 28th DAA holds approximately 
          75-80 events annually and a nine-day county fair at the end 
          of May.  Historically, 10-12% of the 28th DAA budget was 
          state funds with the remainder collected from fair and 
          event income.

          As a result of the elimination of all state funding - $32 
          million - for California DAAs in the 2011-12 Budget, the 
          Governor ordered DFA to form a working group to develop a 
          new fair governance and funding plan for DAAs.  According 
          to the Senate Agriculture Committee, while the group has 
          held meetings, no plan or suggested restructuring has been 
          presented to the Legislature from this working group to 
          date.  

           Prior Legislation
           
          SB 1085 (Runner), Chapter 320, Statutes of 2010, allows the 
          50th DAA, with the consent of the Secretary of DFA, to 
          enter into a joint powers agreement with a JPA for the 
          purpose of operating, maintaining and improving the 50th 
          DAA.  (The Antelope Valley Fair (50th DAA) transitioned to 
          a JPA in 2011.)

          AB 2250 (Sharon Runner), Chapter 452, Statutes of 2008, 
          allows state officers and employees of DAAs to receive 
          compensation from nonprofit corporations, as specified.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

           SUPPORT  :   (Verified  4/30/12)


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          28th District Agricultural Association (SBC Fair) (source)
          City of Hesperia
          Coldwell Banker Commercial 
          Hesperia Recreation and Park District
          Napa Auto & Truck Parts
          Purofirst Fire & Water Restoration
          San Bernardino County Board of Supervisors
          Sunset Hills & Victor Valley Memorial Parks and Mortuaries

           OPPOSITION  :    (Verified  4/30/12)

          SEIU Local 1000

           ARGUMENTS IN SUPPORT  :    According to the author's office, 
          this bill allows 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 allows 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, this bill will help the 
          28th DAA operate more successfully.  

           ARGUMENTS IN OPPOSITION  :    Opponents feel this bill may be 
          premature.  In the 2011-2012 Budget, the Governor 
          instructed DFA to develop a plan for the future operation 
          and maintenance of the Network of California Fairs.  DFA 
          convened a group of stakeholders in 2011, which delivered 
          an informal draft comprehensive plan for the fairs to the 
          Governor.  The opposition asks that the Legislature should 
          hold off on this bill until the Governor introduces his 
          comprehensive plan.


          MEL:mw  4/30/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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