Bill Text: CA SB741 | 2013-2014 | Regular Session | Amended

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Bill Title: California fairs: funding.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2013-08-30 - Set, first hearing. Referred to APPR. suspense file. Hearing postponed by committee. [SB741 Detail]

Download: California-2013-SB741-Amended.html

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BILL NUMBER: SB 741	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 19, 2013
	AMENDED IN SENATE  MAY 28, 2013
	AMENDED IN SENATE  APRIL 24, 2013
	AMENDED IN SENATE  APRIL 10, 2013

INTRODUCED BY    Senator   Cannella
  Senators   Cannella   and Galgiani

   (Coauthors: Senators Berryhill, Fuller, Gaines,  Galgiani,
 and Nielsen)
   (Coauthors: Assembly Members Achadjian, Alejo, Bigelow, 
Chesbro,  Dahle,  Eggman,  Gray, Olsen, Perea, V.
Manuel Pérez, Salas, and Williams)

                        FEBRUARY 22, 2013

   An act to amend Sections 19606.1,  19614,  19620,
and 19620.2 of, and to repeal Sections 19608.3 and 19620.1 of, the
Business and Professions Code, to amend Sections 3954, 3965, 3965.1,
and 3967 of, to repeal Sections 4051.1, 4051.2,  4057,
 and 4401.5 of, and to repeal and add Sections 3200, 4051,
and 4053 of, the Food and Agricultural Code, and to amend 
Section   Sections  11011.2  and 13332.09 
of the Government Code, relating to fairs, making an appropriation
therefor, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 741, as amended, Cannella. California fairs: funding.
   (1) Existing law regulates horse racing in this state and 
provides, among other things,   provides  for the
payment and distribution of license fees in connection with horse
racing meetings. Existing law establishes the Fair and Exposition
Fund to, among other things, allocate moneys for the support of the
network of California fairs. Existing law requires certain license
fees from satellite wagering to be deposited into a separate account
in the Fair and Exposition Fund, and continuously appropriates those
moneys for specified purposes, including, among others, the payment
of expenses incurred in establishing and operating satellite wagering
facilities at fairs.
   This bill would delete the provisions requiring satellite wagering
license fees to be deposited into a separate account in the Fair and
Exposition Fund and to be continuously appropriated for specified
purposes. The bill would instead require certain revenues paid by
racing associations and fairs generated by parimutuel wagering
 and certain revenues from live races paid by fair racing
associations as license fees  to be deposited into the Fair
and Exposition Fund and would require those funds to be continuously
appropriated for various purposes, including, among others, capital
improvements at fairgrounds.  The bill would revise requirements
for concurrence by the Joint Committee on Fairs, Allocation, and
Classification of certain allocations proposed by the Secretary of
Food and Agriculture.  The bill would also require all funds
appropriated for California fairs and expositions to be deposited
into the Fair and Exposition Fund and would continuously appropriate
those funds for various purposes. By continuously appropriating the
funds in the Fair and Exposition Fund, the bill would make an
appropriation.
   (2) Existing law provides that the Department of Food and
Agriculture is responsible for providing oversight of activities
carried out by each California fair, including, but not limited to,
conducting fiscal and performance audits of county fairs and citrus
fruit fairs that are either requested by the fair or that the
department deems necessary, and conducting, or causing to be
conducted, annual fiscal audits and periodic compliance audits.
   This bill would delete the requirement that the department conduct
the audits described above and would instead require the department
to provide that the books and accounts for the prior calendar year of
all fairs receiving money from the Fair and Exposition Fund be
examined and reviewed annually and audited once every 3 years by an
independent certified public accountant or certified public
accountancy firm. The bill would require a summary of the examination
to be appended to the fair's annual statement of  operation,
  operations,  and would provide that the costs of
the annual review or audit be the responsibility of each fair.
   (3) Existing law requires the Legislature, from the total revenue
received from the Department of Food and Agriculture, to annually
appropriate moneys to the department as it deems necessary for the
oversight of the network of California fairs and to perform audits.
Existing law continuously appropriates any of those funds that are
unallocated to the Secretary of Food and Agriculture for specified
purposes.
   This bill would delete those provisions and instead would
appropriate any unallocated balance in the Fair and Exposition Fund
without regard to fiscal years for allocation by the secretary for
capital outlay to California fairs for specified purposes. The bill
would also specify that a reasonable amount of those funds, as
determined by the secretary, may be used during any year by the
Division of Fairs and Expositions to provide oversight and
administration of the network of fairs.  The bill would
require the secretary to annually project the available funds from
the Fair and Exposition Fund and to prepare an annual expenditure
plan for review and approval by the Joint Committee on Fairs,
Allocation, and Classification. The bill would require the secretary'
s recommendations to be deemed approved 30 days after they are
received unless they are rejected by the committee. 
   (4) Existing law divides the state into agricultural districts and
provides for the management of these districts by district
agricultural associations. Existing law provides for a board of
directors for each district agricultural association, and provides
for the appointment of each director by the Governor.
   This bill would authorize the Governor to remove a director for
cause within one year of the director's appointment.
   (5) Existing law specifies the duties and responsibilities of
district agricultural associations, and requires a district
agricultural association to obtain the approval of the Department of
Food and Agriculture prior to exercising certain powers, including,
among others, the power to sue. Existing law also requires a district
agricultural association to obtain the approval of both the
Department of Food and Agriculture and the Department of General
Services in order to exercise certain other powers, including the
power to conduct activities upon the district agricultural
association's property, contract, purchase, or convey an interest in
either real or personal property, or to use or manage its real estate
or personal property.
   This bill would revise the duties and responsibilities of the
Department of Food and Agriculture and the Department of General
Services with respect to district agricultural associations, and,
among other things, would delete the requirement that a district
agricultural association obtain the Department of Food and
Agriculture's approval prior to suing. The bill would also delete the
requirement that a district agricultural association obtain prior
approval from both the Department of Food and Agriculture and the
Department of General Services prior to conducting activities upon
the district agricultural association's own property, or entering
into a contract or exercising powers over its own real or personal
property. The bill would require a district agricultural association
to comply with specified contracting procedures, including, among
others, soliciting bids in writing if the estimated total cost of a
project exceeds  $25,000, as specified.  
$25,000.  The bill would require a district agricultural
association to adopt a fiscal review policy to conduct audits at
regular intervals, as specified, and would authorize the Department
of Food and Agriculture to require an audit to be conducted at an
earlier time if the department deems it necessary to protect the
interests of the district agricultural association. The bill would
specify that the title, control, and possession of all personal
property acquired, held, managed, or operated by a district
agricultural association vests with the district agricultural
association. The bill would delete a provision requiring the
Secretary of Food and Agriculture to expend up to $100,000 each
fiscal year for an exhibit or exhibits at a fair that demonstrates
the process of production and use of food and fiber, and would also
delete a requirement that the secretary provide for a conference of
fair judges to aid the Department of Food and Agriculture in
prescribing regulations, and to expend up to $15,000 for that
purpose. The bill would make other conforming and related changes.

   (6) Under existing law, the Department of General Services
exercises oversight of the acquisition and replacement of motor
vehicles, and the acquisition of certain mobile equipment, by state
agencies, and defines "state agency" for those purposes.  
   This bill would exclude a district agricultural association from
that definition.  
   (6) 
    (7)  This bill would declare that it is to take effect
immediately as an urgency statute.
   Vote: 2/3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 19606.1 of the Business and Professions Code is
amended to read:
   19606.1.  (a) All revenues transferred pursuant to Section
19616.52 and  subdivision (d) of Section 19614  
all other funding for fairs, as specified in Section 3200 of the
Food and Agricultural Code,  shall be deposited in the Fair and
Exposition Fund  pursuant to this section  and,
notwithstanding Section 13340 of the Government Code, are
continuously appropriated from the fund 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 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 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 general support of the network of California fairs
pursuant to the provisions of this chapter.
   (4) For health and safety repair projects at fairs, including fire
and life safety improvement projects, regulatory compliance
projects, and long-term deferred maintenance projects.
   (5) For capital improvements at fairgrounds. In making
determinations to fund capital improvements pursuant to this
paragraph, the secretary may grant priority status to renewable
energy generation projects.
   (6) For the payment of expenses incurred in developing and
operating revenue generating projects at fairs, or which directly
benefit fairs, including the payment of expenses incurred in
establishing and operating horse racing facilities, industry
training, 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 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),   (1) 
   If the total amount of allocations to be made
pursuant to paragraphs (3) to (6), inclusive, of subdivision (a)
exceeds five million dollars ($5,000,000),  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,   those provisions,  and
the committee may not add to, or delete projects or line items from,
the proposed allocations. 
   (d) 
    (2)  The secretary's recommendations to the Joint
Committee on Fairs, Allocation, and Classification shall be deemed
approved 30 days after they are received unless they are rejected by
the committee. 
   (e) 
    (3)  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) 
    (d)  The payments required in any fiscal year for the
purposes of paragraphs (1) and (2) of subdivision (a) shall be made
before the secretary may utilize any moneys pursuant to subdivision
 (g).   (e).  
   (g) 
    (e)  Except as otherwise provided in subdivision
 (f),   (d),  when the revenues deposited
in the Fair and Exposition Fund exceed the amount necessary to
satisfy the purposes of paragraphs (1) and (2) of subdivision (a),
the secretary may utilize the excess amounts plus the amounts
deposited to the credit of the Fair and Exposition Fund 
pursuant to revenues deposited to the credit of the fund 
 from all other sources  to make allocations from the fund
for the purposes of Section 19620.2.
  SEC. 2.  Section 19608.3 of the Business and Professions Code is
repealed. 
  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, for a
fair conducting a live racing meeting, 1 percent of the total amount
handled on live races, excluding wagering at a satellite facility,
shall be retained by the fair association for payment to the state as
a license fee.
   (b) Additionally, 0.48 percent of the total amount handled on live
racing, excluding wagering at a satellite facility, shall be
deposited with the official registering agency pursuant to
subdivision (a) of Section 19617.2, and shall thereafter be
distributed in accordance with subdivisions (b), (c), and (d) of
Section 19617.2.
   (c) (1) After distribution of the applicable amounts as set forth
in subdivisions (a) and (b) and the payments made pursuant to other
relevant sections of this chapter, all funds remaining from the
deductions provided in Section 19610 shall be distributed 47.5
percent as commissions and 52.5 percent as purses. From the amount
distributed as thoroughbred purses, a sum equal to 0.07 percent of
the total handle shall be held by the association to be deposited
with the official registering agency pursuant to subdivision (a) of
Section 19617.2, and shall thereafter be distributed in accordance
with subdivisions (b), (c), and (d) of Section 19617.2.
   (2) Any additional amount generated for purses and not distributed
during the previous corresponding meeting shall be added to the
purses at the current meeting.
   (d) 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 paragraph (6) of subdivision (a) of Section 19606.1. 
   SEC. 4.   SEC. 3.   Section 19620 of the
Business and Professions Code is amended 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 reviews.
   (4) Requiring books and accounts for the prior calendar year of
all fairs receiving money from the fund to be examined and reviewed
annually and audited once every three years by an independent
certified public accountant or certified public accountancy firm
selected by the fair. A summary of this examination, certified by the
selected certified public accountant or certified public accountancy
firm, shall be appended to the fair's annual statement of
operations, along with the accountant or accounting firm's
recommendations, for the approval of the secretary. The cost of a
fair's annual review or audit shall be the responsibility of each
fair. With the approval of the secretary, two or more fairs may
conduct or contract for a joint review or audit.
   (5) Guiding and providing incentives to fairs to seek matching
funds and generate new revenue from a variety of sources.
   (6) Supporting continuous improvement of fair programming to
ensure that California fairs remain highly relevant community
institutions.
   SEC. 5.  SEC. 4.   Section 19620.1 of
the Business and Professions Code is repealed.
   SEC. 6.   SEC. 5.   Section 19620.2 of
the Business and Professions Code is amended to read:
   19620.2.  (a) Any unallocated balance in the Fair and Exposition
Fund 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) A portion of the funds subject to allocation pursuant to
subdivision (a) may be allocated to California fairs for general
operational support. 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.
   (c) As determined by the secretary, a reasonable amount of the
funds specified in subdivision (a) may be used during any year by the
Division of Fairs and Expositions to provide oversight and
administration of the network of California fairs pursuant to this
chapter. 
   (d) The secretary shall annually project the available funds from
the Fair and Exposition Fund and shall advise the Joint Committee on
Fairs, Allocation, and Classification of the administrative budget of
the Division of Fairs and Expositions and the additional staff and
contracts necessary to develop and administer an operational and
policy framework to oversee the network of California fairs and
include that amount in the annual expenditure plan described in
subdivision (e).  
   (e) The secretary shall prepare an annual expenditure plan for use
of the moneys 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 shall not add to, or delete projects or
line items from, the proposed allocation.  
   (f) The secretary's recommendations to the Joint Committee on
Fairs, Allocation, and Classification shall be deemed approved 30
days after they are received unless they are rejected by the
committee.  
   (g) 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. 
   SEC. 7.   SEC. 6.   Section 3200 of the
Food and Agricultural Code is repealed.
   SEC. 8.   SEC. 7.   Section 3200 is
added to the Food and Agricultural Code, to read:
   3200.  (a) The Legislature finds and declares that funding for the
network of California fairs is a cooperative venture and is
anticipated to be generated from multiple sources, public and
private. Because of the benefits that accrue to the state and to its
residents by virtue of having the fair industry participate
cooperatively with the state for the purpose of effectively
overseeing and promoting fairs within the state, the Legislature
finds and declares that the fairs shall work collectively to identify
and designate new funding sources for fairs to be utilized for the
benefit of all fairs in the network.
   (b) Notwithstanding any other law, all funds appropriated for
California fairs and expositions pursuant to this chapter or any
other law shall be deposited in the Fair and Exposition Fund and are
continuously appropriated as specified in Sections 19606.1 and
19620.2 of the Business and Professions Code.
   (c) Notwithstanding Article 2 (commencing with Section 11270) of
Chapter 3 of Part 1 of Division 3 of Title 2 of the Government Code
relating to administrative costs, the California Exposition and State
Fair and the fairs specified in Sections 19418.1, 19418.2, and
19418.3 of the Business and Professions Code shall only be assessed
and pay a share of those costs directly related to personnel
administration and no other administrative costs for services from
other state agencies except costs for services rendered pursuant to
specific contracts entered into with other state agencies.
   SEC. 9.   SEC. 8.   Section 3954 of the
Food and Agricultural Code is amended to read:
   3954.  Each association by its name has perpetual succession. It
may have a seal. An association may be sued and may sue, and may do
any and all things necessary to carry out the powers and the objects
and purposes for which the association is formed.
   SEC. 10.   SEC. 9.   Section 3965 of the
Food and Agricultural Code is amended to read:
   3965.  The board may, with the approval of the department:
   (a) Fix the term of office, the amount of bond, salary, and
prescribe the duties of the secretary and of the treasurer.
   (b) Manage the affairs of the association.
   (c) Make all necessary bylaws, rules, and regulations for the
government of the association.
   (d) Delegate, as it may deem advisable, to its officers or
employees any of the powers that are vested in the board under
subdivision (b). Any delegation of power may be revoked at any time.
   SEC. 11.   SEC. 10.   Section 3965.1 of
the Food and Agricultural Code is amended to read:
   3965.1.  (a) Notwithstanding Section 3965 or 4051, the board may
arrange for and conduct, or cause to be conducted, or by contract
permit to be conducted, by any other individual, institution,
corporation, or association, upon its property at a time as it may be
deemed advisable, any activity.
   (b) Notwithstanding subdivision (a), revenue generating contracts
involving hazardous activities shall not be approved by the board
unless adequate insurance coverage is provided, as determined by the
department in consultation with the Department of General Services.
   SEC. 12.   SEC. 11.   Section 3967 of
the Food and Agricultural Code is amended to read:
   3967.  (a) Any director who misses three consecutive regular
meetings of the board without the permission of the board is deemed
to have resigned from the board.
   (b) The Governor may remove a director for cause within one year
of the director's appointment.
   SEC. 13.   SEC. 12.   Section 4051 of
the Food and Agricultural Code is repealed.
   SEC. 14.   SEC. 13.   Section 4051 is
added to the Food and Agricultural Code, to read:
   4051.  (a) Subject only to the conditions specified in this
chapter, an association may do any of the following:
   (1) Contract in accordance with all of the following:
   (A) All applicable state laws governing contracts, except as
follows:
   (i)  A   Any grant or  contract entered
into by an association for goods is not subject to Chapter 2
(commencing with Section 10290) of Part 2 of Division 2 of the Public
Contract Code.
   (ii) Any  grant or  contract entered into by an
association is not subject to Chapter 3 (commencing with Section
12100) of Part 2 of Division 2 of the Public Contract Code.
    (B) If the estimated total cost of any construction project or
similar work carried out under this section exceeds twenty-five
thousand dollars ($25,000), the district agricultural association
shall solicit bids in writing and shall award the work to the lowest
responsible bidder or reject all bids. The district agricultural
association is subject to all applicable provisions of the Public
Contract Code.
   (C) A district agricultural association may elect to become
subject to the provisions of the Uniform Public Construction Cost
Accounting Act (Chapter 2 (commencing with Section 22000) of Part 3
of Division 2 of the Public Contract Code).
   (2) Accept funds or gifts of value from the United States or any
person to aid in carrying out the purposes of this part.
   (3) Conduct or contract for programs, and contract for the
purchase or lease of goods 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.
   (4) Establish and maintain a bank checking account or other
financial institution account, approved by the Director of Finance in
accordance with Sections 16506 and 16605 of the Government Code, for
depositing funds received by the district agricultural association.
Notwithstanding Section 13340 of the Government Code, all funds
maintained in an account authorized by this paragraph are
continuously appropriated to the board, without regard to fiscal
year, to carry out this part.
   (5) Approve the annual budget of the association and establish a
program for paying vendors who contract with the district
agricultural association.
   (6) Contract with any county or county fair association for
holding a fair jointly with the county or county fair association.
The joint fair is a district fair of the association.
   (7) Make or adopt all necessary orders, rules, or regulations for
governing the activities of the district agricultural association.
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.
   (8) Operate a payroll system for paying employees, and a system
for accounting for vacation and sick leave credits of employees.
   (9) Delegate to the officers and employees of the district
agricultural association the exercise of powers vested in the board
as the board may deem desirable for the orderly management and
operation of the association.
   (10) With the approval of the Department of General Services,
purchase, acquire, hold, sell, or exchange, or convey any interest in
real property for a period in excess of 20 years. Any acquisition of
land or other real property shall be subject to the Property
Acquisition Law (Part 11 (commencing with Section 15850) of Division
3 of Title 2 of the Government Code).
   (11)  Make   With the approval of the
Department of General Services, make  permanent improvements
upon publicly owned real property adjacent to, or near the vicinity
of, the real property of the district agricultural association when
the improvements materially benefit the property of the association.

   (12) With the approval of the Department of General Services,
lease, let, or grant licenses for the use of its real property, or
any portion of that property, to any person or public body for
whatever purpose as may be approved by the board.  
   (12) 
    (13)  Use or manage any of its property jointly or in
connection with any lessee or sublessee, for any purpose approved by
the board. 
   (13) 
    (14)  With the approval of the Department of General
Services, 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. The revenues, moneys, accounts, accounts receivable, contract
rights, and other rights to payment of whatever kind pledged by the
association or its assignees constitute a lien or security interest
that immediately attaches to the property pledged, and is effective,
binding, and enforceable against the association, its successors,
purchasers of the property so pledged, creditors, and all others
asserting rights therein, to the extent set forth, and in accordance
with, the terms and conditions of the pledge, irrespective of whether
those persons have notice of the pledge and without the need for any
physical delivery, recordation, filing, or further action.
   (b) (1) Notwithstanding any other law, an association shall adopt
a fiscal review policy as follows:
   (A) An association with an annual budget exceeding five million
dollars ($5,000,000) shall conduct an annual audit by an independent
certified public accountant or certified public accountancy firm
selected by the board.
   (B) An association with an annual budget of less than five million
dollars ($5,000,000) shall have its books and accounts examined and
reviewed annually and audited once every three years by an
independent certified public accountant or certified public
accountancy firm selected by the board.
   (2) Notwithstanding paragraph (1), the department may require an
audit to be conducted before the times specified in subparagraphs (A)
and (B) of paragraph (1) if the department deems the audit is
necessary to protect the interests of the association.
   SEC. 15.   SEC. 14.   Section 4051.1 of
the Food and Agricultural Code is repealed.
   SEC. 16.   SEC. 15.   Section 4051.2 of
the Food and Agricultural Code is repealed.
   SEC. 17.   SEC. 16.   Section 4053 of
the Food and Agricultural Code is repealed.
   SEC. 18.   SEC. 17.   Section 4053 is
added to the Food and Agricultural Code, to read:
   4053.  Notwithstanding Section 14660.5 of the Government Code, the
title, control, and possession of all personal property acquired,
held, managed, or operated by a district agricultural association,
including property controlled or possessed by the association before
the enactment of this section, vests with the association. 
  SEC. 19.    Section 4057 of the Food and
Agricultural Code is repealed. 
   SEC. 20.  SEC. 18.   Section 4401.5 of
the Food and Agricultural Code is repealed.
   SEC. 21.   SEC. 19.   Section 11011.2 of
the Government Code is amended to read:
   11011.2.  (a) (1) Notwithstanding any other law, including, but
not limited to, Sections 11011 and 14670, except as provided in this
section, the Department of General Services may lease real property
under the jurisdiction of a state agency or department, if the
Director of General Services determines that the real property is of
no immediate need to the state but may have some potential future use
to the program needs of the agency or department.
   (2) The Director of General Services may not lease any of the
following real property pursuant to this section:
   (A) Tax-deeded land or lands under the jurisdiction of the State
Lands Commission.
   (B) Land that has escheated to the state or that has been
distributed to the state by court decree in estates of deceased
persons.
   (C) Lands under the jurisdiction of the State Coastal Conservancy
or another state conservancy.
   (D) Lands under the jurisdiction of the Department of
Transportation or the California State University system, or land
owned by the Regents of the University of California.
   (E) Lands under the jurisdiction of the Department of Parks and
Recreation.
   (F) Lands under the jurisdiction of the Department of Fish and
Wildlife.
   (3) A lease entered into pursuant to this section shall be set at
the amount of the lease's fair market value, as determined by the
Director of General Services. The Director of General Services may
determine the length of term or a use of the lease, and specify any
other terms and conditions that are determined to be in the best
interest of the state.
   (b) The Department of General Services may enter into a long-term
lease of real property pursuant to this section that has outstanding
lease revenue bonds and for which the real property cannot be
disencumbered from the bonds, only if the issuer and trustee for the
bonds approves the lease transaction, and this approval takes into
consideration, among other things, that the proposed lease
transaction does not breach a covenant or obligation of the issuer or
trustee.
   (c) (1) All issuer- and trustee-related costs for reviewing a
proposed lease transaction pursuant to this section, and all other
                                         costs of the lease
transaction related to the defeasance or other retirement of any
bonds, including the cost of nationally recognized bond counsel,
shall be paid from the proceeds of that lease.
   (2) The Department of General Services shall be reimbursed for any
reasonable costs or expenses incurred in conducting a transaction
pursuant to this section.
   (3) Notwithstanding subdivision (g) of Section 11011, the
Department of General Services shall deposit into the General Fund
the net proceeds of a lease entered into pursuant to this section,
after deducting the amount of the reimbursement of costs incurred
pursuant to this section or the reimbursement of adjustments to the
General Fund loan made pursuant to Section 8 of Chapter 20 of the
2009-10 Fourth Extraordinary Session from the lease.
   (d) The Department of General Services shall transmit a report to
each house of the Legislature on or before June 30, 2011, and on or
before June 30 each year thereafter, listing every new lease that
exceeds a period of five years entered into under the authority of
this section and the following information regarding each listed
lease:
   (1) Lease payments.
   (2) Length of the lease.
   (3) Identification of the leasing parties.
   (4) Identification of the leased property.
   (5) Any other information the Director of General Services
determines should be included in the report to adequately describe
the material provisions of the lease.
   SEC. 20.    Section 13332.09 of the   
 Government Code   is amended to read: 
   13332.09.  (a) A purchase order or other form of documentation for
acquisition or replacement of motor vehicles shall not be issued
against any appropriation until the Department of General Services
has investigated and established the necessity therefor.
   (b) A state agency shall not acquire surplus mobile equipment from
any source for program support until the Department of General
Services has investigated and established the necessity therefor.
   (c) Notwithstanding any other law, any contract for the
acquisition of a motor vehicle or general use mobile equipment for a
state agency shall be made by or under the supervision of the
Department of General Services. Pursuant to Section 10298 of the
Public Contract Code, the Department of General Services may collect
a fee to offset the cost of the services provided.
   (d) Any passenger-type motor vehicle purchased for a state
 officers,   officer,  except a
constitutional officer, or a state employee shall be an American-made
vehicle of the light class, as defined by the California Victim
Compensation and Government Claims Board, unless excepted by the
Director of General Services on the basis of unusual requirements,
including, but not limited to, use by the California Highway Patrol,
that would justify the need for a motor vehicle of a heavier class.
   (e) General use mobile equipment having an original purchase price
of twenty-five thousand dollars ($25,000) or more shall not be
rented or leased from a nonstate source and payment therefor shall
not be made from any appropriation for the use of the Department of
Transportation, without the prior approval of the Department of
General Services after a determination that comparable state-owned
equipment is not available, unless obtaining approval would endanger
life or property, in which case the transaction and the justification
for not having sought prior approval shall be reported immediately
thereafter to the Department of General Services.
   (f) (1) The Trustees of the California State University shall, to
the greatest extent feasible, purchase vehicles using statewide
commodity contracts.
   (2) The trustees shall make an interim report to the Governor and
the Legislature on January 1, 2014, and a final report on January 1,
2015, on their motor vehicle procurement, including all of the
following:
   (A) An inventory, by campus, of motor vehicles that includes the
type of vehicle, vehicle usage and fuel data consistent with the
Department of General Services fleet asset management system and
reported to the Department of General Services.
   (B) The number of motor vehicles purchased during the prior fiscal
year, disaggregated by campus and type of vehicle if the passenger
vehicle or truck was purchased through statewide commodity contracts,
and the purchase price.
   (C) Any change to a policy or procedure made during the prior
fiscal year related to motor vehicle procurement and contracts for
procurement and identifying any vehicle procured pursuant to the new
policy or procedure.
   (D) The average time to complete procurements, average
administrative costs, reduced charges paid to the Department of
General Services, and competitive or reduced market prices obtained
for the vehicles.
   (3) A report submitted pursuant to this subdivision shall be
submitted in compliance with Section 9795.
   (g) As used in this section:
   (1) "General use mobile equipment" means equipment that is listed
in the Mobile Equipment Inventory of the State Equipment Council and
capable of being used by more than one state agency, and shall not be
deemed to refer to equipment having a practical use limited only to
the controlling state agency. Section 575 of the Vehicle Code shall
not have application to this section.
   (2) "State agency" means a state agency, as defined pursuant to
Section 11000. The University of California is requested and
encouraged to have the Department of General Services perform the
tasks identified in this section with respect to the acquisition or
replacement of motor vehicles by the University of California.
"State agency" does not include a district agricultural association,
as specified in Section 3802 of the Food and Agricultural Code. 

   (h) This section shall remain in effect only until July 1, 2015,
and as of that date is repealed.
   SEC. 22.   SEC. 21.   This act is an
urgency statute necessary for the immediate preservation of the
public peace, health, or safety within the meaning of Article IV of
the Constitution and shall go into immediate effect. The facts
constituting the necessity are:
   In order to restore the viability of California fairs as soon as
possible, it is necessary that this act take effect immediately.