BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1253
                                                                  Page  1

          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    SB 1253 (Runner) - As Amended:  June 6, 2012 

          Policy Committee:                              AgricultureVote:9 
          - 0 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill allows the 28th District Agricultural Association 
          (DAA) to enter into a Joint Powers Agency (JPA) agreement with 
          an unnamed entity to operate, maintain and improve the 28th DAA. 
           Specifically, this bill:   

          1)Allows the 28th DAA, with consent from the Secretary of the 
            California Department of Food and Agriculture (CDFA), to form 
            a JPA for the purpose of operating, maintaining, and improving 
            the 28th DAA facilities.  

          2)Allows 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. 

          3)Requires the JPA to not sell, divest or pledge real property 
            owned by the State of California without legislative 
            authorization or the consent of CDFA and the California 
            Department of General Services (DGS). 

          4)Allows the JPA to enter into contracts and hire employees. 

          5)Provides civil service employees of the 28th DAA the option to 
            remain in state employment under contract to the JPA or accept 
            positions as an employee of the JPA. 

          6)Requires that any entity with whom the JPA contracts with to 
            manage the 28th DAA, provide every civil service employee of 
            the 28th DAA the option to remain in state employment under 
            contract to the JPA or accept a position as an employee of the 
            JPA.  








                                                                  SB 1253
                                                                  Page  2


          7)Allows the JPA to fill a vacant civil service position with a 
            non-civil service employee. 

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

           FISCAL EFFECT  

          Assuming the eight permanent state employees who make up the 
          staff of the 28th DAA all opt to become employees of the JPA 
          rather than remain state employees, the one-time costs for the 
          layoff program, which would be between $200,000 and $265,000. 
          (When state positions are eliminated the Department of Personnel 
          Administration requires a layoff program, which usually includes 
          a severance package equal to four to six months of the 
          employee's salary.) Generally, bills of this nature specify who 
          the partners in the JPA will be.  This bill does not.  
          Therefore, it is difficult to determine whether the partners in 
          the JPA would be responsible for the providing the funding for 
          the layoff process or the state does.  If the state is held 
          responsible, funding for the layoffs would come either from the 
          Fairs and Exposition Fund or the General Fund. 

           COMMENTS  

           1)Purpose . According to the author, this bill 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.   Supporters have 
            stated that with greater efficiency and closer links to local 
            government, this bill would assist the 28th DAA to operate 
            more successfully.  

           2)San Bernardino County Fair  . 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 annually holds approximately 
            75-80 events and a nine-day county fair at the end of May.  

           3)Joint Powers Agreement  is a formal, legal agreement between 








                                                                 SB 1253
                                                                  Page  3

            two or more public agencies that share a common power and want 
            to jointly implement programs, build facilities, or deliver 
            services. With a JPA, a member agency agrees to be responsible 
            for delivering a service on behalf of the other member 
            agencies.  For example, the City of San Jose signed a JPA with 
            Santa Clara County to jointly administer redevelopment funds. 

            Agencies that can exercise joint powers include federal 
            agencies, state departments, counties, cities, special 
            districts, school districts and redevelopment agencies. While 
            this legislation authorizes the San Bernardino County Fair to 
            enter into a joint powers agreement, it does not specify who 
            the other member agencies will be.

           4)California's Network of Fairs  includes 80 fair organizations 
            divided into four categories:

             a)   52 DAAs - a state government entity.
             b)   23 county fairs - county government or not-for-profit 
               organizations.
             c)   2 citrus fruit fairs - not-for-profit organizations.
             d)   The California Exposition and State Fair (Cal Expo) - a 
               state agency.

           5)Related Legislation  . SB 1085 (Runner), Chapter 320, Statutes 
            of 2010, allowed the 50th DAA, with the consent of the 
            Secretary of CDFA, to enter into a joint powers agreement with 
            a JPA for the purpose of operating, maintaining and improving 
            the 50th DAA.  This bill is similar to SB 1085 (Runner). The 
            main difference is the 50th DAA had a specific JPA partner, 
            the City of Lancaster. 



           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081