BILL NUMBER: SB 899 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 31, 2011
AMENDED IN SENATE MAY 17, 2011
AMENDED IN SENATE MARCH 24, 2011
INTRODUCED BY Senator La Malfa
FEBRUARY 18, 2011
An act to amend Sections 19620 and 19620.1 of the Business and
Professions Code, and to amend Section 4051 of, and to
add Section 3205 to, the Food and Agricultural Code,
relating to district agricultural associations
fairs .
LEGISLATIVE COUNSEL'S DIGEST
SB 899, as amended, La Malfa. District agricultural
associations. Fairs.
Existing law divides the state into agricultural districts and
authorizes residents of a district to form a district agricultural
association for the purpose of holding fairs, expositions, and
exhibitions to exhibit the industries, resources, and products of the
state and for the purpose of constructing, maintaining, and
operating recreational and cultural facilities of general public
interest.
Existing law requires the Department of Food and Agriculture to
exercise oversight of activities carried out by California fairs,
including conducting fiscal and performance audits of county fairs
and citrus fruit fairs that are requested by the fair that is the
subject of the audit and that the department deems necessary.
This bill would delete that remove county
fairs from the department's duty to conduct fiscal and
performance audits of county fairs and citrus fruit fairs
and for which the Le gislature is
authorized to appropriate specified revenue to the department .
The bill would instead require that the books and accounts
of all district agricultural association fairs, county fairs, and
citrus fairs be audited by an independent registered certified public
accountant. The bill would require those fairs to submit an annual
audit to the department for review and would require the department
to review those annual audits permit an audit of a
county fair to be performed upon the agreement of the county board of
supervisors and the governing body of the county fair. The bill
would require, if an audit is performed, that a copy be provided to
the department, and that costs associated with the audit are the
responsibility of the fair. The bill would permit 2 or more fairs to
contract for a single audit with the approval of the department. The
bill would permit district agricultural associations and the
California Exposition and State Fair to be relieved of specified
requirements regarding competitive bidding with the approval of the
department .
By requiring local entities to obtain these audits, the bill would
impose new duties on local entities, thereby imposing a
state-mandated local program.
Existing law authorizes a district agricultural association to
exercise specified powers with the approval of both the Department of
Food and Agriculture and the Department of General Services.
This bill would delete the requirement that a district
agricultural association obtain the approval of the Department of
General Services to exercise the powers granted to it. The bill would
also make technical changes.
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.
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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes no .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. 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 audits and periodic compliance audits.
(4) Conducting fiscal and performance audits of citrus fruit fairs
that are requested by the fair that is the subject of the audit and
that the Department of Food and Agriculture deems to be necessary.
(4)
(5) Guiding and providing incentives to fairs to seek
matching funds and generate new revenue from a variety of sources.
(5)
(6) Supporting continuous improvement of fair
programming to ensure that California fairs remain highly relevant
community institutions.
SEC. 2. Section 19620.1 of the Business and Professions Code is
amended to read:
19620.1. From the total revenue received by the department,
exclusive of money received pursuant to Sections 19640 and 19641, the
Legislature shall annually appropriate to the department those sums
as it deems necessary for the following purposes:
(a) For the oversight of the network of California fairs receiving
money from the fund.
(b) For reviewing annual audits submitted by all district
agricultural association fairs , county fairs, and
citrus fruit fairs.
SEC. 3. Section 3205 is added to the Food and Agricultural Code,
to read:
3205. Notwithstanding any other law, all district agricultural
association fairs, county fairs, and citrus fairs shall be required
to submit an annual audit to the department for review, in accordance
with the following:
(a) The books and accounts of all district agricultural
association fairs, county fairs, and citrus fairs for the calendar
year or fiscal year, as the case may be, shall be examined and
audited annually by an independent registered certified public
accountant (CPA). A summary of this examination, certified by that
CPA, shall be appended to the fair's annual statement of operations,
along with the CPA's recommendations.
(b) Costs associated with fair audits conducted for purposes of
this section shall be the responsibility of the fair.
3205. (a) Upon the agreement of the county board
of supervisors and the governing body of the county fair, an audit of
the county fair may be performed. If an audit is performed pursuant
to these provisions, a copy of the audit shall be provided to the
department. Costs associated with an audit are the responsibility of
the fair.
(c)
(b) With the approval of the department, two or more
fairs may contract for a single audit by the same certified public
accountant in order to be more cost effective.
(d)
(c) With the approval of the department, district
agricultural associations and the California Exposition and State
Fair are relieved of any requirements to abide by the provisions of
the State Contracting Manual which may apply to competitively bidding
an audit service contract as developed by the Department of General
Services.
SEC. 4. Section 4051 of the Food and
Agricultural Code is amended to read:
4051. An association, with the approval of the Department of Food
and Agriculture, may do any of the following:
(a) Contract.
(b) Purchase, acquire, hold, sell, exchange, or convey any
interest in real or personal property and beautify or improve that
property. 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).
(c) Lease, let, or grant licenses for the use of its real estate
or personal property, or any portion of that property, to any person
or public body for whatever purpose may be approved by the board.
(d) Use or manage its real estate or personal property, or any
portion of that property, for any or all of the purposes of this
section jointly with any lessee, sublessee, or licensee, or otherwise
use or manage the property in connection with the lease, sublease,
or license which is made or granted.
(e) Lease or let its real property for use as a public park, or
for recreational or playground purposes.
(f) Rent or permit the use of its premises for any purpose which
is beneficial to the agricultural industry, including, but not
limited to, the holding of sales or auctions of cattle or other
livestock.
(g) 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.
(h) Make permanent improvements upon publicly owned real property
adjacent to real property of the district when the improvements
materially benefit the property of the district.
(i) 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 and security interest
which immediately attaches to the property so 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 act.
SEC. 5. 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.