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AB-1204 Fairs: California Exposition and State Fair: State Fair Leasing Authority.(2011-2012)

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AB1204:v98#DOCUMENT

Amended  IN  Assembly  January 04, 2012

CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill
No. 1204


Introduced  by  Assembly Member Dickinson

February 18, 2011


An act to amend Section 3312 of Sections 3301, 3321, 3322, 3331, 3332, 3351, 3352, 3354, and 3355 of, and to repeal Section 3333 of, the Food and Agricultural Code, relating to fairs, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 1204, as amended, Dickinson. Fairs: California Exposition and State Fair: State Fair Leasing Authority.
(1) Existing law establishes the California Exposition and State Fair as a separate, independent entity in state government. Existing law provides that the governing body of the California Exposition and State Fair shall be an 11-member board of directors. Existing law requires the board of directors to appoint a general manager of the California Exposition and State Fair and to submit an annual report to the Legislature and the Governor regarding the financial condition, present operations, and future planned activities of that entity.
This bill would provide that the California Exposition and State Fair general manager shall be the chief executive officer of that entity. The bill would require the board to develop, maintain, and comply with written policies and procedures for contracting, and would require the board to incorporate specified policies and procedures to apply to contracts or procurement by the California Exposition and State Fair. The bill would delete the requirement that the board submit the annual report described above, and would instead require, on or before May 31 of each year, the general manager to report to the State Fair Leasing Authority on all of the events and operations of the California Exposition and State Fair during that prior year and its financial condition. The bill would require the books and accounts to be audited, as specified.
(2) Existing law sets forth the duties of the Board of Directors of the California Exposition and State Fair. Among other duties, the board is authorized to appoint all necessary marshals and police to keep order and preserve peace at the California Exposition and State Fair. The board is also authorized, with the approval of the Department of General Services, to carry out certain functions, including, but not limited to, purchasing, acquiring, or holding real or personal property and beautifying or improving that property, and to make permanent improvements upon publicly owned real property near the California Exposition and State Fair when the improvements materially benefit that entity’s property.
This bill would require the board to delegate to the officers and employees of the California Exposition and State Fair the independent power to appoint all necessary peace officers for that entity. The bill would also revise the powers of the board, as described above, by requiring the board to obtain the approval of the State Fair Leasing Authority, rather than the Department of General Services, to exercise those powers, and would additionally authorize the board to dispose of or exchange property.
(3) Existing law authorizes the authority to enter into leases or other agreements for the use of the State Fair Race Track or any other property owned or controlled by the California Exposition and State Fair, as provided. Existing law requires the board to establish and maintain a bank checking account or a savings and loan account, continuously appropriated to the board to carry out its duties, for the depositing of funds received by the California Exposition and State Fair. Existing law requires that the proceeds of the sale of any interest in real property which is owned by any association be paid into the Fair and Exposition Fund, and be available for expenditure by the association with the approval of the Department of Food and Agriculture and the State Public Works Board, as specified.
The bill would require the board to establish separate accounts for the depositing of funds received by the State Fair Leasing Authority in the conduct of its business, and all funds maintained in the authority accounts would be continuously appropriated to the board or the authority to carry out their respective duties. The bill would require that the proceeds of any lease, sale, or other agreement become the property of the California Exposition and State Fair and be available to the fair in perpetuity, as provided. By increasing moneys in a continuously appropriated fund, this bill would make an appropriation.
(4) The bill would also include a statement of legislative findings and declarations.

Existing law provides that the governing body of the California Exposition and State Fair shall be an 11 member board of directors who shall be residents of California and appointed, as specified. Existing law provides that 9 directors shall be appointed by the Governor with the consent of the Senate and that the directors appointed by the Governor shall have general knowledge of, interest in, and expertise in one or more specified areas, including, among others, fair management, the arts, education, and youth. Existing law provides that the directors shall be appointed for 4 year terms.

This bill would provide that every director appointed pursuant to those provisions whose term has expired shall continue to discharge the duties of his or her office until a successor is appointed and qualified. The bill would additionally add public relations and marketing to the list of topics of which the Governor’s appointees are required to have knowledge of, interest in, and expertise in.

Vote: MAJORITY2/3   Appropriation: NOYES   Fiscal Committee: NOYES   Local Program: NO  

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


SECTION 1.

 The Legislature hereby finds and declares all of the following:
(a) The California Exposition and State Fair each year showcases the best of the state’s agricultural, manufacturing, and arts and science innovations, highlights the entrepreneurial character of our state’s economy, lifestyle, and culture, and provides a gathering place for all citizens of California to celebrate the rich history of our state and to explore the trends shaping its future.
(b) The California Exposition and State Fair is located on a 350-acre portion of the 700-acre site in the area of the City of Sacramento known as “Point West,” and it has been in this location for over 40 years. The Board of Directors of the California Exposition and State Fair desires to modernize and update the aging capital facilities of the fair to alleviate the higher operating costs resulting from deferred maintenance and to improve public accessibility to the property. New and improved facilities will help increase attendance and expand the number and type of exposition events, thereby increasing revenues.
(c) The annual budget of the California Exposition and State Fair has been substantially below the amount necessary to maintain the fair as a first-class entertainment facility, and the annual shortfalls have caused a growing backlog of deferred maintenance issues that are in excess of $45 million.
(d) Therefore, it is the intent of the Legislature to provide the Board of Directors and management of the California Exposition and State Fair the necessary tools to improve its product, develop new revenue streams, streamline its business operations, and create and promote a strategy to help the California Exposition and State Fair preserve and enhance this valuable state asset by competing more favorably in the marketplace.
(e) When fully implemented, this legislation will create new jobs and generate significant economic activity and state and local tax revenues throughout the region, while additionally providing a source of revenue for the long-term capital needs of the California Exposition and State Fair.

SEC. 2.

 Section 3301 of the Food and Agricultural Code is amended to read:

3301.
 It is the intent of the Legislature to vitalize effect a reorganization of the California Exposition and State Fair by creating a new as a separate, independent entity in state government managed by a board of directors with sufficient autonomy for efficient operation balanced by appropriate state oversight. The board of directors shall develop a policy which establish a policy that provides managerial and fiscal responsibility and shall work towards a goal of in order to ensure fiscal independence from state General Fund support. The board of directors shall develop a policy which establish and maintain a policy that provides for an innovative program including the concept of an, agriculturally themed exposition which would communicate the issues surrounding the production and marketing of food, fiber, and plant material to the general public and such other concepts as are feasible that celebrates California and the diversity of its people. The California Exposition and State Fair shall strive to showcase the state’s industries and agriculture with a program that recognizes California traditions and explores the trends shaping its future.

SEC. 3.

 Section 3321 of the Food and Agricultural Code is amended to read:

3321.
 The board shall appoint, pursuant to Section 4 of Article VII of the California Constitution, a general manager of the California Exposition and State Fair who shall be the chief executive officer and serve at the pleasure of the board. The term of office and duties of the general manager shall be determined by the board.

SEC. 4.

 Section 3322 of the Food and Agricultural Code is amended to read:

3322.
 (a) The following officers of the California Exposition and State Fair shall be appointed by the Governor, pursuant to Section 4 of Article VII of the California Constitution, upon selection by and recommendation of the board:
(1) Deputy general manager.
(2) Program manager.
(3) Marketing manager.
(b) The state officers appointed pursuant to subdivision (a) shall serve at the pleasure of the board, under the direction of the general manager.

SEC. 5.

 Section 3331 of the Food and Agricultural Code is amended to read:

3331.
 (a) (1) The board shall serve as the policymaking body for the California Exposition and State Fair and shall have full responsibility for the year-round management and operation of all facilities of the California Exposition and State Fair in accordance with Sections 3301 and 3311.

The

(2) The board shall provide for an annual fair in one or more seasonal divisions to be held in Sacramento County of the and shall strive to showcase the agriculture and agricultural products of the state, the industries and industrial products of the state, and the commercial products exported and imported through the ports of the state in accordance with Sections 3301 and 3311. The fair shall be designated, and may be known as, the California State Fair.
(b) On or before May 31 of each year, the general manager of the California Exposition and State Fair shall report to the State Fair Leasing Authority for the immediately preceding calendar year ending December 31 all the events and operations of the California Exposition and State Fair during that prior year and its financial condition. The books and accounts of the California Exposition and State Fair for that prior calendar year shall be examined and audited annually by an independent registered certified public accountant or certified public accountancy firm.

SEC. 6.

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

3332.
 The Subject only to the conditions specified in this chapter, the board may do any of the following:
(a) Contract. in accordance with all of the following:
(1) The board shall develop, maintain, and comply with its own written policies and procedures for contracting.
(2) Notwithstanding any other law, in developing the policies and procedures referenced in paragraph (1), the board shall incorporate the following to apply to contracts or procurement by the California Exposition and State Fair:
(A) To ensure the fullest competition, the board shall adopt and publish competitive bidding procedures for the award of any procurement or contract involving an expenditure of more than one hundred thousand dollars ($100,000). The competitive bidding procedures shall include, but not be limited to, requirements for submission of bids and accompanying documentation, guidelines for the use of requests for proposals, invitations to bid, or other methods of bidding, and a bid protest procedure. The general manager of the fair shall determine whether the goods or services subject to this paragraph are available through existing contracts or price schedules of the Department of General Services.
(B) The contracting standards, procedures, and rules contained in this subdivision shall also apply with respect to any subcontract involving an expenditure of more than one hundred thousand dollars ($100,000). The board shall establish, as part of the bidding procedures for general contracts, subcontracting guidelines that implement this requirement.
(C) The board is subject to the Small Business Procurement and Contract Act (Chapter 6.5 (commencing with Section 14835) of Part 5.5 of Division 3 of Title 2 of the Government Code).
(D) In advertising or awarding any general contract for the procurement of goods and services exceeding one hundred thousand dollars ($100,000), the board and the general manager shall require all bidders or contractors, or both, to include specific plans or arrangements to utilize subcontracts with socially and economically disadvantaged small business entities. The subcontracting plans shall delineate the nature and extent of the services to be utilized, and those entities or individuals identified for subcontracting if known.
(E) (i) It is the intent of the Legislature in enacting this section to establish as an objective of the utmost importance the advancement of business opportunities for these small business entities in the business activities created by the California Exposition and State Fair. In that regard, the board shall have an affirmative duty to achieve the most feasible and practicable level of participation by small business entities owned by socially and economically disadvantaged persons in its procurement programs.
(ii) For the purposes of this section, socially and economically disadvantaged persons include women, Black Americans, Hispanic Americans, Native Americans (including American Indians, Eskimos, Aleuts, and Native Hawaiians), Asian-Pacific Americans (including persons whose origins are from Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam, the United States Trust Territories of the Pacific, Northern Marianas, Laos, Cambodia, and Taiwan), and other minorities or any other natural persons found by the board to be disadvantaged.
(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, and contract for the purchase or lease of goods and services as are necessary for effectuating the purposes of this chapter, 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 received by the California Exposition and State Fair, and separate accounts for depositing funds received by the State Fair Leasing Authority in the conduct of its business under the provisions of this chapter. Notwithstanding Section 13340 of the Government Code, all funds maintained in an account authorized by this subdivision are continuously appropriated to the board or the authority, without regard to fiscal year, to carry out this part.
(e) Establish a program for paying vendors who contract with the California Exposition and State Fair.
(f) Make or adopt all necessary orders, rules, or regulations for governing the activities of the California Exposition and State Fair. Notwithstanding Section 14, any orders, rules, or regulations adopted by the board are exempt from Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. For informational purposes only, however, any order, rule, or regulation adopted by the board may be transmitted to the Office of Administrative Law for filing with the Secretary of State pursuant to Section 11343 of the Government Code.
(g) Delegate to the officers and employees of the California Exposition and State Fair the independent authority to appoint civil service personnel according to state civil service procedures. The board may also delegate to officers and employees of the California Exposition and State Fair the independent authority to appoint marshals and police as authorized by subdivision (j).
(h) Operate a payroll system for paying employees, and a system for accounting for vacation and sick leave credits of employees.
(i) 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.
(j) Appoint all necessary marshals and Delegate to the officers and employees of the California Exposition and State Fair the independent authority to appoint all necessary 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). Of this 25 percent, any portion may be comprised of probation officers certified under Section 832. Nothing in this subdivision shall be construed to give probation officers appointed pursuant to this subdivision peace officer powers pursuant to Section 830.2 of the Penal Code.
(k) With the approval of the Department of General Services State Fair Leasing Authority, purchase, acquire, dispose of, exchange, or hold real or personal property, and beautify or improve that property. Any acquisition of land or other real property is subject to the approval of the Department of General Services, and in the case of the purchase of real property, is subject to the Property Acquisition Law (Part 11 (commencing with Section 15850) of Division 3 of Title 2 of the Government Code).
(l) With the approval of the Department of General Services State Fair Leasing Authority, make permanent improvements upon publicly owned real property adjacent to, or near the vicinity of, the real property of the California Exposition and State Fair when the improvements materially benefit the property of the California Exposition and State Fair.
(m) Lease, with With the approval of the Department of General Services, State Fair Leasing Authority, lease any of its property for any purpose for any period of time.
(n) Use or manage any of its property, with With the approval of the Department of General Services, State Fair Leasing Authority, use or manage any of its property jointly or in connection with any lessee or sublessee, for any purpose approved by the board.
(o) With the approval of the Department of General Services State Fair Leasing Authority, pledge any and all revenues, moneys, accounts, accounts receivable, contract rights, and other rights to payment of whatever kind, pursuant to such terms and conditions as are approved by the board. Any issuance of bonds, contracts entered into, debts incurred, settlements, judgments, or liens under this section or pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code, shall not directly, indirectly, or contingently obligate the state or any political subdivision thereof to levy or to pledge any form of taxation therefor or to make any appropriation for their payment. Any such bond shall contain on the face thereof a statement to the following effect: “Neither the full faith and credit nor the taxing power of the State of California is pledged to the payment of the principal of, or interest on this bond.”

SEC. 7.

 Section 3333 of the Food and Agricultural Code is repealed.
3333.

The board shall submit a report to the Legislature and Governor on or before May 31st of each year with respect to the financial condition, present operations, and future planned activities of the California Exposition and State Fair.

SEC. 8.

 Section 3351 of the Food and Agricultural Code is amended to read:

3351.
 (a) There is hereby created the State Fair Leasing Authority, a joint powers authority formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code, which shall be composed of the Department of Food and Agriculture, the Department of Finance, the Department of General Services, and the California Exposition and State Fair.
(b) For the purposes of Section 6502 of the Government Code, the common powers to be exercised by the State Fair Leasing Authority shall be the powers of a district agricultural association granted by this chapter and the powers of the parties to the agreement.

SEC. 9.

 Section 3352 of the Food and Agricultural Code is amended to read:

3352.
 (a) The authority State Fair Leasing Authority shall be governed by a board of directors, which shall be composed of the Secretary of Food and Agriculture, the Director of Finance, the Director of General Services, and four individuals, appointed as provided in paragraph (1), who are members of the Board of Directors of the California Exposition and State Fair. The Treasurer and Controller shall be members of the board of the authority only for the purposes of hearing and deciding upon matters related to the issuance of revenue bonds pursuant to this chapter. The Director of Finance shall serve as chairperson of the authority. All meetings of the authority shall be open and public.
(1) Of the four appointed members of the Board of Directors of the California Exposition and State Fair, one shall be appointed by the Speaker of the Assembly, one shall be appointed by the Senate Committee on Rules, and two shall be appointed by the Governor.
(2) The authority may contract with consultants as approved by the board of the authority. The authority shall not may use the staff of the California Exposition and State Fair as provided in Section 3353 or may employ any other staff necessary to carry out the purposes of this part.
(3) The general manager of the California Exposition and State Fair may serve only in an advisory in any capacity to the authority as determined by the chairperson of the authority, subject to any prohibition against dual officeholding.
(b) The authority is a “department” for the purposes of hearings pursuant to Article 2 (commencing with Section 11180) of Chapter 2 of Part 1 of Division 3 of Title 2 of the Government Code.

SEC. 10.

 Section 3354 of the Food and Agricultural Code is amended to read:

3354.
 The authority may enter into leases or other agreements in accordance with the powers and duties granted in Section 3332, except as otherwise provided in the Horse Racing Law (Chapter 4 (commencing with Section 19400) of Division 8 of the Business and Professions Code), for the use of the State Fair Race Track or any other property owned or controlled by the California Exposition and State Fair which are necessary to further the purposes of Section Sections 3331 and 3332, or to provide horse racing at the State Fair Race Track. A lease or agreement entered into pursuant to this section chapter shall be on behalf of the California Exposition and State Fair, and the State Fair shall continue in control of its property, subject to the conditions and terms of that lease or agreement. Notwithstanding any other law, the proceeds of any lease, sale, or other agreement pursuant to this chapter shall become the property of the California Exposition and State Fair and shall be available to the fair in perpetuity for any of the purposes of this part.

SEC. 11.

 Section 3355 of the Food and Agricultural Code is amended to read:

3355.
 The California Exposition and State Fair, in consultation with the authority, shall prepare a master plan approved by the board of directors of the fair for the long-range comprehensive development and improvement of, and construction upon, the property of the California Exposition and State Fair. The plan shall prescribe the amounts which may be expended for the various features of the plan, the period authorized for the completion of each project, and the terms of any revenue bond financing undertaken with respect to the plan. The plan shall require that any revenue bond financing shall be rated in one of the four highest rating categories by two nationally recognized rating agencies. Upon its completion, the master plan shall be submitted to the Joint Legislative Budget Committee for review authority for approval. The master plan is subject to amendment by the authority, with the approval of the Board of Directors of the California State Fair Board of Directors of the California Exposition and State Fair, with the approval of the authority.

SECTION 1.Section 3312 of the Food and Agricultural Code is amended to read:
3312.

(a)The governing body of the California Exposition and State Fair shall be an 11-member board of directors. The directors shall be residents of California and shall be appointed as follows:

(1)Nine directors shall be appointed by the Governor with the consent of the Senate. The directors appointed by the Governor shall have general knowledge of, interest in, and expertise in one or more of the following areas: fair management, city or county government, horse racing, the arts, exhibiting, the media, public relations, education, youth, commerce and commercial products of the state, industry and industrial products of the state, agricultural production and forest industries, the entertainment industry, livestock and poultry, sports, recreation, fisheries, oceanography, organized labor, and finance, marketing, and banking.

(A)Five of the directors appointed by the Governor shall be knowledgeable in the production, processing, or marketing of agricultural products and may be appointed from lists of nominees submitted for consideration to the Governor from California agricultural organizations, district agricultural associations, and county and citrus fruit fairs.

(B)One of the directors appointed by the Governor shall be a public member.

(C)Three of the directors appointed by the Governor shall be representative, to the extent possible, of areas of knowledge, interest, and expertise enumerated in paragraph (1).

(2)One director shall be appointed by the Speaker of the Assembly and one director shall be appointed by the Senate Committee on Rules. These persons shall be representative, to the extent possible, of areas of knowledge, interest, and expertise enumerated in paragraph (1).

(b)The directors shall be appointed for four-year terms. The appointing authority shall appoint directors to fill vacancies which occur during a term, and the appointments shall be for the remainder of the unexpired term.

(c)Notwithstanding Section 1774 of the Government Code or any other provision of law, every director appointed pursuant to this section whose term has expired shall continue to discharge the duties of his or her office until a successor is appointed and qualified.