BILL ANALYSIS �
AB 2490
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 2490 (Eggman)
As Amended August 13, 2014
Majority vote
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|ASSEMBLY: |75-0 |(May 27, 2014) |SENATE: |34-1 |(August 18, |
| | | | | |2014) |
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Original Committee Reference: AGRI.
SUMMARY : Modifies the District Agricultural Association's
(DAAs) requirements for activities needing prior approval by the
California Department of Food and Agriculture (CDFA) and/or the
Department of General Services (DGS); recasts language expanding
duties; and, makes technical conforming changes.
The Senate amendments :
1)Eliminate the sunset conflict for DGS fleet purchasing
authority;
2)Delete requirements for DAAs to follow Small Business
Procurement and Contracting Act provisions;
3)Add a Cal Recycling and Recovery reporting exemption for DAAs;
4)Eliminate DAAs from future legislative mandated reporting,
except as specified; and,
5)Make technical non-substantive changes.
AS PASSED BY THE ASSEMBLY , this bill remains substantively
similar to the version approved by the Senate.
FISCAL EFFECT : According to the Senate Committee on
Appropriations, pursuant to Senate Rule 28.8, negligible state
costs.
COMMENTS : Historically, and until 2009, DAAs had been funded by
a portion of horse racing revenues, and then by the state
General Fund (GF), which was eliminated in 2011. DAAs remain
state entities, and so are obligated to operate under the state
AB 2490
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procurement and reporting requirements, even though they are not
receiving state funds for operational needs. This is causing
significant hardships for many of the smaller and midsized DAAs,
which may have limited or only part-time employees, or only
volunteers to maintain the grounds and buildings.
According to the author, this bill has been developed in
cooperation with CDFA and DGS, in an attempt to address the new
reality of DAAs not receiving any state funds, and move them
away from the requirement to adhere to state accounting rules,
reporting requirements, and state laws, in operating their
respective fairs. This bill eliminates many of the preapproval
requirements for DAAs to procure, purchase and operate, by
raising the dollar limits requiring approval by CDFA and/or DGS.
Current legislation: AB 1647 (Bigelow) of the current
legislative session, would repeal several requirements for fairs
including an annual report to CDFA related to free pass
admissions by fairs; CDFA expenditures on exhibits, as
specified; and, an annual conference related to judging
exhibits. AB 1647 is pending in the Senate Agriculture
Committee.
SB 741 (Cannella) of the current legislative session, would make
several substantive and clarifying changes to current law
related to the operation, oversight, and funding of the network
of California fairs, and contains an urgency clause. SB 741 is
currently in the Assembly Appropriations Committee.
Related legislation: AB 95 (Budget Committee), Chapter 2,
Statutes of 2011, repealed the $32 million annual GF
appropriation for the support of the network of California
fairs.
SB 16 X2 (Ashburn), Chapter 12, Statutes of 2009-10 Second
Extraordinary Session, provides that horse racing license fees
no longer be paid into the Fairs & Exposition (F&E) Fund, and
instead provides that beginning July 1, 2009, $32 million shall
be continuously appropriated from the state GF to the F&E Fund
for the support of the network of California fairs.
SB 281 (Maldonado), Chapter 346, Statutes of 2007, required CDFA
to develop criteria to be used for the disposal of property by
DAAs and Cal Expo.
AB 2490
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AB 1628 (Agriculture Committee), Chapter 423, Statutes of 2001,
modified the relationship between CDFA and DAAs regarding the
various financial transactions of the DAAs and county fairs.
AB 2688 (Agriculture Committee), Chapter 938, Statutes of 2000,
authorized CDFA, in consultation with DGS, to create an
alternative expenditure reporting procedure that shall, at a
minimum, maintain an audit trail, and maintain fiduciary
responsibility by DAAs, county and citrus fruit fairs, and will
be for fairs that have annual reportable expenditures of not
more than $1 million.
AB 2756 (Agriculture Committee), Chapter 535, Statutes of 1998,
permitted DGS, in conjunction with CDFA, to delegate purchasing
authorities for individual DAAs, based upon each one's financial
resources and fiscal performance. The Division of Fairs and
Expositions, within CDFA, would be required to annually report
what levels of delegation are requested and granted, to the
Joint Committee on Fairs, Allocations, and Classification.
Analysis Prepared by : Jim Collin / AGRI. / (916) 319-2084
FN: 0004710