BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 1647|
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CONSENT
Bill No: AB 1647
Author: Bigelow (R)
Amended: 3/28/14 in Assembly
Vote: 21
SENATE AGRICULTURE COMMITTEE : 5-0, 6/17/14
AYES: Galgiani, Cannella, Berryhill, Lieu, Wolk
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 78-0, 5/15/14 (Consent) - See last page for
vote
SUBJECT : Fairs: Department of Food and Agriculture
SOURCE : Author
DIGEST : This bill repeals the requirement that specified
fairs report the number of credential and courtesy passes
issued. This bill repeals requirements that the Department of
Food and Agriculture (DFA) expend funds relating to exhibits.
ANALYSIS :
Existing law:
1.Requires that each state, district, county, or citrus fruit
fair that receives state funds make an annual report to DFA
regarding the total number of credential and courtesy pass
admissions issued and honored at the fair.
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2.Requires the Secretary of Food and Agriculture 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 this
state.
3.Requires the Secretary of Food and Agriculture to annually
provide for a conference of fair judges to aid DFA in
prescribing regulations for the judging of exhibits and for
the premiums.
This bill:
1.Repeals the requirement that district agricultural
associations (DAAs) annually report to DFA the total number of
credential and courtesy passes offered at the fair.
2.Repeals the requirement that DFA expend up to $100,000 on
exhibits at fairs to demonstrate how food and fiber is
produced and used in the state.
3.Repeals the requirement that DFA expend up to $15,000 annually
to provide a conference of fair judges to help determine
regulations for the judging of exhibits and for determining
the amount of premiums paid for exhibits.
Background
California fairs have been in existence since 1854 and have
since grown to encompass 78 fairs statewide. This network of
California fairs is composed of 52 DAAs, 23 county fairs, two
citrus fruit fairs, and The California Exposition and State Fair
(Cal Expo). DAAs are state government entities that are
governed by nine-member gubernatorial appointed boards of
directors. In contrast, county fairs are county government or
not-for-profit organizations; citrus fruit fairs are
not-for-profit organizations; and Cal Expo is a state agency.
In 2009, California fairs generated a $2.85 billion economic
impact from consumer sales, $855 million in income for
California employees, $127 million in annual state and local tax
revenues, and provided 25,000 jobs. Fairs serve the local
community by providing a venue for a variety of agricultural and
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local community events such as livestock shows and competitions,
county fairs, trade shows, exhibits, and food, nutrition, and
agricultural education. Fairgrounds also serve the state by
assisting in emergency preparedness and response. In the event
of natural disasters, fairgrounds may be transformed into
command centers for CAL FIRE, CalEMA, Homeland Security, law
enforcement, and FEMA, and also provide shelter for displaced
persons and their pets and livestock.
The Division of Fairs and Expositions within DFA provides fiscal
and policy oversight for the network of California fairs, and
the Department of General Services provides oversight for use of
state property, procurement, and services contracts.
The source of state funding for these fairs has historically
been dependent on horse racing license fees, which in recent
years have significantly declined. In 2009, the Legislature
recognized the need for a new source of funding for the
continuation of fairs and, thus, continuously appropriated $32
million from the state's General Fund to be paid into the Fairs
and Exposition Fund (F&E Fund) SB 16 X2 (Ashburn, Chapter 12,
Statutes of 2009-10 Second Extraordinary Session).
However, the 2011-12 state Budget eliminated General Fund
contributions to the F&E Fund, requiring DAAs to be
self-sufficient as of January 1, 2012. Since that time, several
bills have been introduced and proposals have been discussed
that aim to reduce DAA operating and administrative costs.
Given that DAAs are state entities, these proposals have
generally focused on reducing state oversight and specified
requirements while increasing local decision-making and
flexibility.
Comments
According to the author's office, "The Governor has slashed the
Fair and Exposition Fund completely, drying up our rural fairs'
funding foundation for the foreseeable future. It is imperative
the Legislature and Governor act to alleviate any cost pressures
county fairs are facing." Specifically, this bill removes the
annual credential and courtesy passes reporting requirement, the
requirement that DFA fund exhibits highlighting food production,
and the requirement that DFA provide for an annual conference
for fair judges.
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Prior Legislation
AB 95 (Assembly Committee on the Budget, Chapter 2, Statutes of
2011) repeals the $32 million annual General Fund appropriation
for the support of the network of California fairs.
SBX2 16 (Ashburn, Chapter 12, Statutes of 2009-10 Second
Extraordinary Session) provides that horse racing license fees
no longer be paid into the F&E Fund, and instead provides that
beginning July 1, 2009, $32 million shall be continuously
appropriated from the state General Fund to the F&E Fund for the
support of the network of California fairs.
SB 1085 (Runner, Chapter 320, Statutes of 2010) allows the 50th
DAA, with consent of the Secretary of DFA, to enter into a joint
powers agreement with a nonprofit organization to operate,
maintain, and improve the 50th DAA.
AB 2250 (Runner, Chapter 452, Statutes of 2008) authorizes
officers and employees of DAAs to receive compensation from
nonprofit corporations.
SB 281 (Maldonado, Chapter 346, Statutes of 2007) requires DFA
to develop criteria to be used for the disposal of property by a
DAA and Cal Expo.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 7/1/14)
Rural County Representatives of California
Western Fairs Association
ARGUMENTS IN SUPPORT : The Western Fairs Association writes in
support stating that by eliminating the annual report
requirement which uses personnel hours that most fairs can no
longer expend, this bill provides some much needed relief for
fairs across the state.
The Rural County Representatives of California (RCRC) states
this bill provides some modest reform to the governance
structure of operation local fairs/fairgrounds.
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ASSEMBLY FLOOR : 78-0, 5/15/14
AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,
Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hern�ndez,
Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Lowenthal,
Maienschein, Medina, Melendez, Mullin, Muratsuchi, Nazarian,
Nestande, Olsen, Pan, Patterson, Perea, John A. P�rez, V.
Manuel P�rez, Quirk, Quirk-Silva, Rendon,
Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,
Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
NO VOTE RECORDED: Mansoor, Vacancy
JL:e 7/2/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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