BILL ANALYSIS �
AB 1647
Page 1
Date of Hearing: April 30, 2014
ASSEMBLY COMMITTEE ON AGRICULTURE
Susan Talamantes Eggman, Chair
AB 1647 (Bigelow) - As Amended: March 28, 2014
SUBJECT : Fairs: Department of Food and Agriculture.
SUMMARY : This bill repeals several requirements for fairs
including: an annual report to the Department of Food and
Agriculture (CDFA) related to free pass admissions by fairs;
CDFA expenditures on exhibits, as specified; and, an annual
conference related to judging exhibits. Specifically, this bill :
1. Repeals the requirement for fairs to make an annual
report to CDFA of the total number of free pass admissions
issued and honored at the fair.
2. Repeals the requirement that the director (Secretary) of
CDFA expend up to $100,000 in any fiscal year for exhibits
at a state-supported fair that shows the process of
production and use of agricultural products in the state.
3. Repeals the requirement that the Secretary annually
arrange for a conference of fair judges to help CDFA make
regulations for the judging of exhibits and allows the
Secretary to expend up to $15,000 for the conference
EXISTING LAW :
1. Requires that each state, district, county, or citrus
fruit fair that receives state funds make an annual report
to CDFA regarding the total number of credential and
courtesy pass admissions issued and honored at the fair.
2. Requires the Secretary to expend up to $100,000 in any
fiscal year for exhibits at a state-supported fair that
demonstrate the process of production and use of food and
fiber from the producer to the consumer in the state.
3. Requires the Secretary to annually provide for a
conference of fair judges to aid CDFA in prescribing
regulations for the judging of exhibits and for the
premiums paid for all classes, sections, and types of
exhibits, and authorizes the Secretary to expend up to
AB 1647
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$15,000 in any fiscal year for these purposes.
FISCAL EFFECT : Unknown. This bill has been keyed fiscal by
Legislative Counsel.
COMMENTS : CDFA's Division of Fairs and Expositions is
responsible for overseeing the fairs throughout the state. 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. Fairs
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.
Prior to 2010, the primary source of state funding for fairs was
from horse racing license fees. The steady decline in license
fees prior to 2010 had resulted in a deficiency in revenues
generated to the Fair & Exposition Fund, which impacted fairs
across the state.
SB 16 X2 (Ashburn), Chapter 12, Statutes of 2009, provided a
stable funding source to the fairs by allocating an annual
appropriation of $32 million from the state's general fund (GF)
to support fairs. In the 2011-12 state budget, the GF support
was eliminated, and for the first time in 80 years, California
fairs had to depend completely on self-generated revenues to
operate, beginning January 1, 2012.
According to the author, fairs have endured financial hardships
since the state cut their funding in 2010. Repealing the
requirements for an annual report on courtesy passes, an annual
conference on exhibits, and exhibit funding, would alleviate
some of the cost pressure to fairs up and down the state.
RELATED LEGISLATION :
AB 2490 (Eggman) of 2014, would modify District Agricultural
Association's (DAAs) requirements for activities needing prior
approval by CDFA and/or the Department of General Services;
recasts language expanding duties; and, makes technical
conforming changes. This bill is currently in the Assembly
committee on Agriculture
SB 741 (Cannella) of 2013, would make several substantive and
AB 1647
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clarifying changes to current law related to the operation,
oversight, and funding of the network of California fairs; and,
contains an urgency clause. This bill is currently in the
Assembly Committee on Appropriations.
AB 2345 (Ma) of 2012, would have established the California Fair
Network Commission as a nonprofit mutual-benefit corporation to
assess fees for services, manage funds, and provide
administration and oversight of California's fairs. This bill
was held in the Assembly Committee on Appropriations.
SB 1085 (Runner), Chapter 320, Statutes of 2010, allows the 50th
DAA, with the consent of the Secretary of CDFA, to enter into a
joint powers agreement with a nonprofit organization to operate,
maintain, and improve the 50th DAA.
REGISTERED SUPPORT / OPPOSITION :
Support
Western Fairs Association
Opposition
None on file.
Analysis Prepared by : Victor Francovich / AGRI. / (916)
319-2084