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SB-1397 Horseracing: fairs: revenue.(1995-1996)

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SB1397:v94#DOCUMENT

Senate Bill No. 1397
CHAPTER 1110

An act to amend Sections 19418, 19606.1, 19614, 19621, 19621.3, 19623, 19627.5, 19628, 19630, and 19630.5 of, to amend and renumber Sections 19620 and 19621.1 of, to add Sections 19620, 19621.1, 19622.1, 19622.2, 19622.3, 19622.4, 19622.5, and 19629 to, and to repeal Sections 19621.2, 19622, 19624, 19625, 19627, 19627.1, 19627.2, 19630.1, and 19630.3 of, the Business and Professions Code, to amend Section 3332 of, and to repeal Section 4401 of, the Food and Agricultural Code, to amend Sections 14852, 25905, and 25906 of the Government Code, and to amend Section 605 of the Unemployment Insurance Code, relating to fairs, and making an appropriation therefor.

[ Filed with Secretary of State  September 30, 1996. Approved by Governor  September 29, 1996. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 1397, Maddy. Horseracing: fairs: revenue.
(1)  Existing law provides that all revenue distributed to the state as license fees from satellite wagering facilities is required to be deposited in a separate account in the Fair and Exposition Fund, and is continuously appropriated to the Department of Food and Agriculture for (a) the repayment of the principal and interest of bonds issued for the purpose of constructing or acquiring certain improvements at a fair; (b) payment to the State Race Track Leasing Commission to be pledged for the repayment of debt necessary to construct a racetrack grandstand at the 22nd District Agricultural Association fairgrounds; (c) the payment of expenses incurred in establishing and operating satellite wagering facilities at fairs; (d) health and safety repair projects at fairs; and (e) the support of fairs generally.
This bill would additionally appropriate these funds for the support of an equipment and operating fund to produce and display a consolidated California signal at satellite wagering facilities and fairs, for the development and payment of revenue generating projects, pilot projects to restructure the fair system, and projects realizing a cost savings, and would require an allocation of the funds for those purposes, and for health and safety projects, to be made with the concurrence of the Joint Committee on Fairs Allocation and Classification.
(2)  Existing law requires the Legislature to annually appropriate to the California Horse Racing Board such sums from revenue received by the board as the Legislature deems necessary for, among other things, the costs of laboratory testing related to horseracing.
This bill would require the Legislature to appropriate for that purpose an amount not less than the amount expended in the 1994–95 fiscal year.
(3)  Existing law provides that not more than 5% of the funds in the Fair and Exposition Fund may be used during the 1995–96 fiscal year to augment the budget of the Department of Food and Agriculture to provide services to the fairs.
This bill would instead provide that not more than 5% of the funds in the fund may be used to develop and administer an operational and policy framework for the network of California fairs, and would, for that purpose, specify the fairs that are included in the network of California fairs. The bill would require the Secretary of Food and Agriculture to prepare an annual expenditure plan for funds available from the fund, for review and approval by the Joint Committee on Fairs Allocation and Classification.
(4)  Existing law provides for the organization of the areas of the state into district agricultural associations. District agricultural associations are state agencies. Among other things, district agricultural associations are authorized to enter into contracts. Existing law also authorizes the formation of organizations to carry on citrus fruit fairs, and counties are authorized to conduct county fairs. Existing law also provides that a public entity is liable for an injury proximately caused by an act or omission of a public employee within the scope of employment if that act or omission would have given rise to a cause of action against the employee.
This bill would require county fairs to meet specified standards, and to submit to the Department of Food and Agriculture every 5 years for its approval the written agreement between the entity producing the county fair and the county, thereby imposing a state-mandated local program. This bill would also provide that neither the state nor the Department of Food and Agriculture are liable for any contract or tort of, or any action taken by, any fair in the network of California fairs, which would include district agricultural association fairs, county fairs, and citrus fruit fairs.
(5)  Existing law permits the Division of Fairs and Expositions of the Department of Food and Agriculture to enter into an agreement with the State Personnel Board for the board to provide an increased level of personnel services to the division on a reimbursement basis for the personnel needs of district agricultural associations, and requires the Secretary of Food and Agriculture to reimburse the State Personnel Board for those services from any unexpended moneys appropriated to the department from the Fair and Exposition Fund.
This bill would repeal that provision.
(6)  Existing law makes certain annual appropriations from the fund for the support and administration of the California Exposition and State Fair, the Los Angeles County Fair, the 1 A District Agricultural Association and the National Orange Show. Existing law also appropriates certain sums to the department for the encouragement of fairs.
This bill would repeal the annual appropriations to these specific fairs and the annual appropriation for the encouragement of fairs.
(7)  Existing law permits any unanticipated revenues, other than any allocation from the state, which are in excess of the approved budget for any fiscal or calendar year of any California fair, to be retained by that fair and expended for fair projects involving public health and safety, for fair projects involving major and deferred maintenance, for fair projects necessary due to any emergency, for projects that are required by physical changes to the fair site, for projects that are required to protect the fair property or installation, such as fencing and flood protection, and for the acquisition or improvement of any property or facility that will serve to enhance the operation of the fair, but limits the amount that may be retained to 20% or less of the budgeted revenue.
This bill would remove the limitation on the amount that may be retained from unanticipated revenues. The bill would also permit the Department of Food and Agriculture to administer a loan program for fairs in the network of California fairs. (8)  Existing law requires all state printing to be done in the Office of State Printing, but exempts from that requirement all printing required by a district agricultural association.
This bill would also make an exception from that requirement for printing required by the California Exposition and State Fair.
(9)  The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.
Appropriation: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 19418 of the Business and Professions Code is amended to read:

19418.
 “State designated fairs,” referred to in this chapter as fairs, means the California Exposition and State Fair in the City of Sacramento and those fairs specified in Sections 19418.1, 19418.2, and 19418.3 that may receive financial support or are otherwise governed pursuant to this chapter. These fairs may also be referred to as part of the “network of California fairs.”

SEC. 2.

 Section 19606.1 of the Business and Professions Code is amended to read:

19606.1.
 (a)  Except as otherwise provided in Section 19606.3, all revenues distributed to the state as license fees from satellite wagering facilities shall be deposited in a separate account in the fund and, notwithstanding Section 13340 of the Government Code, are continuously appropriated from that account to the Department of Food and Agriculture, for allocation by the Secretary of Food and Agriculture, at his or her discretion, for the purposes set forth in paragraphs (1) to (6), inclusive. The concurrence of the Director of Finance shall be required for allocations pursuant to paragraphs (1) and (2). Allocations pursuant to paragraphs (3) to (6), inclusive, shall be made with the concurrence of the Joint Committee on Fairs Allocation and Classification.
(1)  For the repayment of the principal of, interest on, and costs of issuance of, and as security, including any coverage factor, pledged to the payment of, bonds issued or to be issued by a joint powers agency or other debt service or expense, including repayment of any advances made or security required by any provider of credit enhancement or liquidity for those bonds or other indebtedness or expenses of maintaining that credit enhancement or liquidity, incurred for the purpose of constructing or acquiring improvements at a fair’s racetrack inclosure, satellite wagering facilities at fairs, health and safety repair projects, or handicapped access compliance projects at fairs or for the purpose of refunding bonds or other indebtedness incurred for those purposes. As used in this paragraph, “coverage factor” means revenues in excess of the amount necessary to pay debt service on the bonds or other indebtedness, up to an amount equal to 100 percent more than the amount of that debt service, which a joint powers agency, pursuant to the resolution or indenture under which the bonds or other indebtedness are or will be issued, pledges as additional security for the payment of that debt service or is required to have or maintain as a condition to the issuance of additional bonds or other indebtedness. Notwithstanding any other provision of law, the department may also commit any funds available for allocation under Article 10 (commencing with Section 19620) to complete projects funded under this paragraph in the priority described in this paragraph.
(2)  For payment to the State Race Track Leasing Commission to be pledged for the repayment of debt necessary to construct a racetrack grandstand at the 22nd District Agricultural Association fairgrounds. This payment shall be made only if the Secretary of Food and Agriculture determines, annually, that all other pledged revenues have been applied to the repayment of that debt and have been determined by the secretary to be inadequate for that purpose.
(3)  For the payment of expenses incurred in establishing and operating satellite wagering facilities at fairs.
(4)  For the support of an equipment and operating fund to produce and display a consolidated California signal at satellite wagering facilities and fairs.
(5)  For health and safety repair projects at fairs, which includes fire and life safety improvement projects, California Code of Regulations compliance projects, and long-term deferred maintenance projects.
(6)  For the development and payment of revenue generating projects, the establishment of pilot projects to restructure the current fair system, and for projects realizing a cost savings for more efficient utilization of existing fair resources.
(b)  The Secretary of Food and Agriculture may not make an allocation for purposes of paragraphs (2) to (6), inclusive, of subdivision (a) until the payments required in any fiscal year pursuant to paragraph (1) of subdivision (a) have been funded.
(c)   Pursuant to subdivision (a), the Joint Committee on Fairs Allocation and Classification shall review and concur, or not concur, with the secretary’s determination of the allocations to be made pursuant to paragraphs (3) to (6), inclusive, of subdivision (a) in total, and the committee may not add to, or delete projects or line items from, the proposed allocations.
(d)  Approval of the Joint Committee on Fairs Allocation and Classification is deemed complete when one of the following conditions is met:
(1)  The annual budget act is enacted.
(2)  If the secretary’s recommendations are received by the Joint Committee on Fairs Allocation and Classification after the enactment of the annual budget act, the recommendations shall be deemed approved 30 days after they are received unless they are rejected by the committee.
(e)  If the Joint Committee on Fairs Allocation and Classification does not concur with the secretary’s recommendations, the secretary may submit another set of recommendations to the committee pursuant to this section.
(f)  The payments required in any fiscal year for the purposes of paragraphs (1) to (3), inclusive, of subdivision (a) shall be made before any transfer is made pursuant to subdivision (g).
(g)  Except as otherwise provided in subdivision (f), when the revenues deposited in the separate account exceed eleven million dollars ($11,000,000) in any fiscal year, 98 percent of the amount in excess of eleven million dollars ($11,000,000) shall be transferred to the General Fund.
(h)  All of the costs of administering the accounts created by subdivision (a) and Section 19606.3 shall be charged to the respective accounts.

SEC. 3.

 Section 19614 of the Business and Professions Code is amended to read:

19614.
 (a)  Notwithstanding Sections 19611 and 19612, and except for an association that qualifies pursuant to Section 19612.6 or 19614.1, the California Exposition and State Fair or a district or county fair shall pay a daily license fee based on its conventional and exotic parimutuel handle, excluding wagering at a satellite wagering facility, at the following rates:
Daily Handle
License Fee Rate
$500,000 or less ........................
2.5 percent of the handle.
$500,000 to $1,000,000 ........................
$12,500 plus 3.5 percent of the handle in excess of $500,000.
$1,000,000 to $1,500,000 ........................
$30,000 plus 3.75 percent of the handle in excess of $1,000,000.
$1,500,000 or more ........................
$48,740 plus 5 percent of the handle in excess of $1,500,000.
No fair racing association shall pay a license fee under this section in excess of 4.5 percent of its daily parimutuel handle, excluding wagering at a satellite wagering facility.
(b)  After distribution of the applicable license fees as set forth in subdivision (a), all funds remaining from the deductions provided in Section 19610 shall be distributed 48 percent as commissions and 52 percent as purses.
Any additional amount generated for purses and not distributed during the previous corresponding meeting shall be added to the purses at the current meeting.
(c)  In addition to the amounts deducted pursuant to Section 19610, any fair racing association shall deduct 1 percent from the total amount handled in its daily conventional and exotic parimutuel pools. The additional 1 percent shall be deposited in the Fair and Exposition Fund and is hereby appropriated for the purposes specified in Section 19630.

SEC. 4.

 Section 19620 of the Business and Professions Code is amended and renumbered to read:

19620.1.
 (a)  From the total revenue received by the board, exclusive of money received pursuant to Sections 19640 and 19641, the sum of two hundred sixty-five thousand dollars ($265,000) plus an amount equal to 63/100 of 1 percent of the gross amount of money handled in the annual parimutuel pool generated within this state, or the maximum amount received by the state from the parimutuel pool of a racing meeting held in this state, whichever is less, shall be paid into the State Treasury to the credit of the Fair and Exposition Fund. If the revenues paid into the Fair and Exposition Fund under this section are in excess of thirteen million dollars ($13,000,000) in any fiscal year, one-half of the amount in excess of the thirteen million dollars ($13,000,000) shall be transferred to the General Fund.
(b)  From the total revenue received by the board, exclusive of money received pursuant to Sections 19640 and 19641, and in addition to the funds paid into the State Treasury to the credit of the Fair and Exposition Fund as specified in subdivision (a), the Legislature shall annually appropriate and the board shall deposit to the credit of the Fair and Exposition Fund, such sums as it deems necessary for the following purposes:
(1)  For the support of the board, including any costs and expenses incurred by the Attorney General in the enforcement of this chapter as shall be authorized by the board, including, compensation including any fringe benefits paid to stewards and to the official veterinarian, and an amount not less than the amount expended in the 1994–95 fiscal year for the costs of laboratory testing related to horseracing pursuant to Section 19580.
(2)  To the Department of Food and Agriculture for the oversight of the network of California fairs receiving money from the fund.
(3)  To the Department of Food and Agriculture for the contributions, or the cost of benefits in lieu of contributions, payable to the Unemployment Fund by the network of California fairs receiving funds pursuant to this article, as a result of unemployment insurance coverage pursuant to Section 605 of the Unemployment Insurance Code.
(4)  To the Department of Food and Agriculture for the auditing of all district agricultural association fairs.

SEC. 4.5.

 Section 19620 is added to the Business and Professions Code, to read:

19620.
 (a)  The Legislature finds and declares that the Department of Food and Agriculture is responsible for ensuring the integrity of the Fair and Exposition Fund, administering allocations from the fund to the network of California fairs, as defined in Sections 19418 to 19418.3, inclusive, and providing oversight of activities carried out by each California fair.
(b)  Oversight shall include, but not be limited to, the following:
(1)  Monitoring the solvency of the Fair and Exposition Fund.
(2)  Distributing available state resources to the network of California fairs based on criteria for state allocations approved by the Secretary of Food and Agriculture. The criteria for the distribution of available state resources to the network of California fairs shall not include a consideration of the structure that governs the fair.
(3)  Creating a framework for administration of the network of California fairs allowing for maximum autonomy and local decisionmaking authority, and conducting, or causing to be conducted, annual fiscal audits and periodic compliance audits.
(4)  Guiding and providing incentives to fairs to seek matching funds and generate new revenue from a variety of sources.
(5)  Supporting continuous improvement of fair programming to ensure that California fairs remain highly relevant community institutions.

SEC. 4.6.

 Section 19621 of the Business and Professions Code is amended to read:

19621.
 (a)  Not more than 5 percent of the Fair and Exposition Fund may be used during any fiscal year to augment the budget of the Department of Food and Agriculture to develop and administer an operational and policy framework for the network of California fairs.
(b)  The Secretary of Food and Agriculture shall annually project the available revenues from this source and submit a recommendation to the Governor for the additional staff and contracts necessary to oversee the network of California fairs.
(c)  The Secretary of Food and Agriculture shall prepare an annual expenditure plan for funds available from the Fair and Exposition Fund for review and approval by the Joint Committee on Fairs Allocation and Classification. The Joint Committee on Fairs Allocation and Classification shall review and concur, or not concur, with the spending plan in total, and may not add to, or delete projects or line items from, the budget.
(d)  Approval of the Joint Committee on Fairs Allocation and Classification is deemed complete when one of the following conditions is met:
(1)  The annual budget act is enacted.
(2)  If the secretary’s recommendations are received by the Joint Committee on Fairs Allocation and Classification after the enactment of the annual budget act, the recommendations shall be deemed approved 30 days after they are received unless they are rejected by the committee.
(e)  If the Joint Committee on Fairs Allocation and Classification does not concur with the secretary’s recommendations, the secretary may submit another set of recommendations to the committee pursuant to this section.

SEC. 5.

 Section 19621.1 of the Business and Professions Code is amended and renumbered to read:

19621.2.
 The Secretary of Food and Agriculture shall prepare and submit to the Department of Finance an estimate of the contributions, or the cost of benefits in lieu of contributions, that are payable to the Unemployment Fund by all California fairs receiving funds pursuant to this article. The Director of Finance shall include those estimates in the Budget Bill submitted to the Legislature.

SEC. 6.

 Section 19621.1 is added to the Business and Professions Code, to read:

19621.1.
 Notwithstanding any other provision of law, neither the state nor the Department of Food and Agriculture are liable for any contract or tort of, or any action taken by, any fair in the network of California fairs that do not comply with the requirements of Section 19622.3.
No member of the fair board, or any employee or agent thereof, is personally liable for the contracts or actions of the fair board, and no member of the fair board or employee or agent thereof is responsible individually in any way to any other person for error in judgment, mistakes, or other acts, either of commission or omission, as principal, agent, or employee, except for his or her own individual acts of dishonesty or crime. No member of the fair board shall be held responsible individually for any act or omission of any other member of the fair board. The liability of the members of the fair board is several and not joint, and no member is liable for the default of any other member.

SEC. 7.

 Section 19621.2 of the Business and Professions Code is repealed.

SEC. 8.

 Section 19621.3 of the Business and Professions Code is amended to read:

19621.3.
 (a)  The Secretary of Food and Agriculture shall prepare and submit to the Department of Finance an estimate of revenue to be deposited in the fund and allocations to be made from the fund for each fiscal year.
The Director of Finance may authorize short-term, cash-flow loans from the unappropriated surplus of the General Fund to the Fair and Exposition Fund if all of the following conditions are met:
(1)  The loan will be repaid during the same fiscal year in which it is made.
(2)  No loan exceeds the amount remaining to be allocated in any fiscal year or 75 percent of the revenue estimated to be deposited in the Fair and Exposition Fund during the remainder of the fiscal year.
(b)  The Secretary of Food and Agriculture shall notify the State Controller when loans under this section are no longer required and any unnecessary loan funds shall be returned to the General Fund.

SEC. 9.

 Section 19622 of the Business and Professions Code is repealed.

SEC. 10.

 Section 19622.1 is added to the Business and Professions Code, to read:

19622.1.
 (a)  Any fair that receives appropriations of state funds or that occupies or utilizes land or facilities owned or leased by the state is included in the network of California fairs. The California Exposition and State Fair and every fair defined as a district agricultural association, county fair, or citrus fruit fair in Sections 19418 to 19418.3, inclusive, is a California fair in the network of California fairs.
(b)  To maintain its eligibility to receive funds or to utilize state assets, a California fair shall do all of the following:
(1)  File an annual statement of operations with the Department of Food and Agriculture.
(2)  Conduct an annual fair that includes agricultural and other community-relevant exhibits and competitions.
(c)  The Secretary of Food and Agriculture shall develop an appeal process for fairs to appeal any decision concerning the allocation of funds appropriated to fairs.

SEC. 11.

 Section 19622.2 is added to the Business and Professions Code, to read:

19622.2.
 The administrative oversight authority of the Department of Food and Agriculture over the California Exposition and State Fair is, in conjunction with the approval of the Department of Finance, limited to the approval of the California Exposition and State Fair’s budget.

SEC. 11.5.

 Section 19622.3 is added to the Business and Professions Code, to read:

19622.3.
 (a)  The administrative oversight authority of the Department of Food and Agriculture shall include, but is not limited to, requiring district agricultural associations to do all of the following:
(1)  Meet all standards prescribed by the Department of Food and Agriculture pursuant to Section 19622.1.
(2)  Comply with fiscal and policy directives of the department.
(b)  For district agricultural associations that consistently meet or exceed the department’s standards for sound operational or financial management, the department may delegate approval authority to the board of directors for budgets, contracts, or maintenance projects.
(c)  In the case of impending insolvency, or on the basis of evidence of insufficient fiscal controls at a district agricultural association, the department, in order to protect the integrity of the Fair and Exposition Fund, may make allocations from the Fair and Exposition Fund for restricted purposes only, rather than for general support and operations.

SEC. 12.

 Section 19622.4 is added to the Business and Professions Code, to read:

19622.4.
 The administrative oversight authority of the Department of Food and Agriculture shall include, but is not limited to, requiring county fairs and citrus fruit fairs to do both of the following:
(a)  Meet all standards prescribed by the Department of Food and Agriculture pursuant to Section 19622.1.
(b)  Submit to the department for review and approval every five years the written agreement between the entity producing the county fair and the host county to ensure that operation protocols for every county fair are parallel to state fiscal and policy directives that apply to district agricultural associations.

SEC. 13.

 Section 19622.5 is added to the Business and Professions Code, to read:

19622.5.
 (a)  When a district agricultural association becomes insolvent, the Department of Food and Agriculture shall assume control in order to ensure restoration of fiscal solvency.
(b)  The Secretary of Food and Agriculture shall do, but not be limited to doing, all of the following:
(1)  Implement substantial changes in the district’s fiscal policies and practices, including, but not limited to, filing a petition under Chapter 9 of the federal Bankruptcy Act for the adjustment of indebtedness, if necessary.
(2)  Assume all legal rights, duties, and powers of the governing board of the district fair.

SEC. 14.

 Section 19623 of the Business and Professions Code is amended to read:

19623.
 Funds appropriated from the Fair and Exposition Fund may be expended for the payment of premiums, for capital outlay purposes, including the purchase of land and equipment for construction and improvements, and for the general support and maintenance of the network of California fairs and for the department’s oversight of the network of California fairs.

SEC. 15.

 Section 19624 of the Business and Professions Code is repealed.

SEC. 16.

 Section 19625 of the Business and Professions Code is repealed.

SEC. 17.

 Section 19627 of the Business and Professions Code is repealed.

SEC. 18.

 Section 19627.1 of the Business and Professions Code is repealed.

SEC. 19.

 Section 19627.2 of the Business and Professions Code is repealed.

SEC. 20.

 Section 19627.5 of the Business and Professions Code is amended to read:

19627.5.
 Notwithstanding Section 19623, any unanticipated revenues, other than any allocation from the state, which are in excess of the approved budget for any fiscal or calendar year of any California fair shall be retained by that fair and may be expended for any purpose specified in Section 19630.
These funds may be expended, without regard to any fiscal year, by any fair to which Section 19623 applies, upon positive action by the board of directors of that fair, which shall be recorded in the official minutes of the fair approving a plan of expenditure for those funds for the purposes specified in Section 19630.

SEC. 21.

 Section 19628 of the Business and Professions Code is amended to read:

19628.
 If any California fair does not hold a fair in any year because of war conditions, or because the grounds or buildings of the fair have been taken over and occupied by the United States or its armed forces, or that fair is not held due to an act of God, or any unavoidable catastrophe, natural or human made, the fair shall nevertheless submit an annual statement of operations and shall not resume operations without a budget that has been approved by the Department of Food and Agriculture.

SEC. 22.

 Section 19629 is added to the Business and Professions Code, to read:

19629.
 The Department of Food and Agriculture may make and may administer loans from the Fair and Exposition Fund to any fair in the network of California fairs according to agreements that are specific to the circumstances that gave rise to a receiving fair’s need for a loan, subject to the fair’s demonstrated ability to repay the loan.

SEC. 23.

 Section 19630 of the Business and Professions Code is amended to read:

19630.
 (a)  Any unallocated balance from subdivision (a) of Section 19620.1 is hereby appropriated without regard to fiscal years for allocation by the Secretary of Food and Agriculture for capital outlay to California fairs for fair projects involving public health and safety, for fair projects involving major and deferred maintenance, for fair projects necessary due to any emergency, for projects that are required by physical changes to the fair site, for projects that are required to protect the fair property or installation, such as fencing and flood protection, and for the acquisition or improvement of any property or facility that will serve to enhance the operation of the fair.
(b)  It is the intent of the Legislature that these moneys be used primarily for those fairs whose sources of revenue may be limited for purposes specified in this section.

SEC. 24.

 Section 19630.1 of the Business and Professions Code is repealed.

SEC. 25.

 Section 19630.3 of the Business and Professions Code is repealed.

SEC. 26.

 Section 19630.5 of the Business and Professions Code is amended to read:

19630.5.
 Notwithstanding any other provision of law, any fair qualified to receive an allocation that has complied with the requirements set forth in subdivision (b) of Section 19622.1, with the approval of the Department of Food and Agriculture, may expend available funds for the construction or operation of recreational and cultural facilities of general public interest.

SEC. 27.

 Section 3332 of the Food and Agricultural Code is amended to read:

3332.
 The board may do any of the following:
(a)  Contract.
(b)  Accept funds or gifts of value from the United States or any person to aid in carrying out the purposes of this part.
(c)  Conduct or contract for programs, either independently or in cooperation with any individual, public or private organization, or federal, state, or local governmental agency.
(d)  Establish and maintain a bank checking account or a savings and loan association account, approved by the Director of Finance in accordance with Sections 16506 and 16605 of the Government Code, for depositing funds appropriated to the California Exposition and State Fair pursuant to Section 19623 of the Business and Professions Code. The Department of Finance shall audit the account at the end of each fiscal year.
(e)  Make or adopt all necessary orders, rules, or regulations for governing the activities of the California Exposition and State Fair.
(f)  Delegate to the officers and employees of the California Exposition and State Fair the authority to appoint civil service personnel according to state civil service procedures.
(g)  Delegate to the officers and employees of the California Exposition and State Fair the exercise of powers vested in the board as the board may deem desirable for the orderly management and operation of the California Exposition and State Fair.
(h)  Appoint all necessary marshals and police to keep order and preserve peace at the California Exposition and State Fair premises on a year-round basis who shall have the powers of peace officers specified in Section 830.2 of the Penal Code. A peace officer of the Department of the California Highway Patrol may be employed as a peace officer while off duty from his or her regular employment, subject to those conditions as may be set forth by the Commissioner of the Department of the California Highway Patrol. At least 75 percent of the persons appointed pursuant to this subdivision shall possess the basic certificate issued by the Commission on Peace Officers Standards and Training. The remaining 25 percent may be appointed if the person has completed a Peace Officer Standards and Training certified academy or possesses a Level One Reserve Certificate (as defined in Section 832.6 of the Penal Code).
(i)  Lease, with the approval of the Department of General Services, any of its property for any purpose for any period of time.
(j)  Use or manage any of its property, with the approval of the Department of General Services, jointly or in connection with any lessee or sublessee, for any purpose approved by the board.

SEC. 28.

 Section 4401 of the Food and Agricultural Code is repealed.

SEC. 29.

 Section 14852 of the Government Code is amended to read:

14852.
 All printing required by the California Exposition and State Fair and district agricultural associations is exempt from Section 14850.

SEC. 30.

 Section 25905 of the Government Code is amended to read:

25905.
 The board of supervisors may contract with a nonprofit corporation or association for the conducting of an agricultural fair, as agent of the county, for a period not exceeding five years. The contract may provide for the use, possession, and management of any public park or fairgrounds by the nonprofit corporation, as agent of the county, during the period of the contract.
All net proceeds received by the nonprofit corporation, from whatever source, shall be deposited within 60 days after the conclusion of any fair in a county fair fund that shall be established in the county treasury for that purpose. The moneys in the fund shall be expended only for support of the county fair, including maintenance and operation of the county fair facilities, premiums, purposes incidental to the fair, capital outlay for fair purposes and for the acquisition or purchase of real property to be used for fair purposes.
The corporation shall submit an annual budget to the Department of Food and Agriculture, showing the estimated revenues and the proposed expenditures from all sources during the ensuing calendar year, which budget shall first be approved by the county board of supervisors.
Any other provisions of law relating to county fairs as a condition to receiving an allocation of state money for fair purposes shall be observed by the nonprofit corporation.
When that use, possession, and management is granted, the board may also allocate and pay to the nonprofit corporation in advance a sum of money it deems necessary to be used for the purposes for which that use, possession, and management is granted.

SEC. 31.

 Section 25906 of the Government Code is amended to read:

25906.
 The board of supervisors of a county may contract with a nonprofit corporation or association for the conducting of an agricultural fair in the county for the period and under those conditions as the board may determine. The contracts may provide for the use, possession, and management of any public park or fairgrounds by the nonprofit corporation during the period of the contract. When that use, possession, and management is granted, the board may also allocate to the nonprofit corporation a sum of money it deems necessary to be used for any purpose incidental to the fair. If the contract involves the use of property acquired with money derived from the state or if the contract contemplates the use of money allocated or appropriated by the state for the fair, the contract shall be subject to approval by the Department of Food and Agriculture. If the county desires to receive an allocation under Section 4401 of the Food and Agricultural Code, the corporation shall submit an annual budget to the Department of Food and Agriculture, showing the estimated revenues and the proposed expenditures from all sources during the ensuing calendar year, which budget shall first be approved by the board of supervisors. The corporation shall also comply with any other provisions of law relating to county fairs as a condition necessary for the county to receive an allocation of state money for fair purposes. Upon the dissolution of any such corporation all property and assets thereof within the county with which it contracts shall be paid to that county.

SEC. 32.

 Section 605 of the Unemployment Insurance Code is amended to read:

605.
 (a)  Except as provided by Section 634.5, “employment” for the purposes of this part and Parts 3 (commencing with Section 3501) and 4 (commencing with Section 4001) includes all service performed by an individual (including blind and otherwise handicapped individuals) for any public entity, if the service is excluded from “employment” under the Federal Unemployment Tax Act solely by reason of paragraph (7) of Section 3306(c) of that act.
(b)  As used in this section, “public entity” means the State of California (including the Trustees of the California State University and Colleges, and the California Industries for the Blind), any instrumentality of this state (including the Regents of the University of California), any political subdivision of this state or any of its instrumentalities, a county, city, district (including the governing board of any school district or community college district, any county board of education, any county superintendent of schools, or any personnel commission of a school district or community college district that has a merit system pursuant to any provision of the Education Code), entities conducting fairs as identified in Sections 19418 to 19418.3, inclusive, of the Business and Professions Code, any public authority, public agency, or public corporation of this state, any instrumentality of more than one of the foregoing, and any instrumentality of any of the foregoing and one or more other states or political subdivisions.

SEC. 33.

 Notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund.
Notwithstanding Section 17580 of the Government Code, unless otherwise specified, the provisions of this act shall become operative on the same date that the act takes effect pursuant to the California Constitution.