SECTIONS 19620-19642.1 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 19620-19642.1

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 county fairs and
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.
(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.

19620.1. (a) From the total revenue received by the board,
including revenues transferred from the Satellite Wagering Account
pursuant to subdivision (g) of Section 19606.1, but excluding 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.
(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
horse racing 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, county fairs, and citrus
fruit fairs.

19620.2. Notwithstanding any other provision of law, on July 1,
2009, and on each July 1 thereafter, 32 million dollars ($32,000,000)
shall be transferred from the General Fund and paid into the State
Treasury to the credit of the separate account of the Fair and
Exposition Fund specified in Section 19606.1 and shall be
continuously appropriated for allocation as specified in that section
and Section 19620.1 only for the financial support of the network of
California fairs.

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.

19621.1. Notwithstanding any other provision of law, neither the
state nor the Department of Food and Agriculture is liable for any
contract or tort of, or any action taken or any failure to act by,
any fair in the network of California fairs that does 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.

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.

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.

19622.1. (a) In order to maintain their eligibility to receive
funds or to utilize state assets, the fairs specified in Section
19418 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 agriculture and other
community-relevant exhibits and competitions.
(b) The Department of Food and Agriculture may withhold or
restrict allocations to fairs that do not comply with this section or
the fiscal standards or administrative standards established by the
department. The department shall establish an appeal process for
fairs regarding funds that are withheld or restricted.

19622.2. (a) The authority of the Department of Food and
Agriculture shall include, but is not limited to, requiring the
California Exposition and State Fair to meet all applicable standards
prescribed by the department.
(b) The department may delegate approval authority for such
matters as the department may determine to the Board of Directors of
the California Exposition and State Fair if the fair complies with
this section.
(c) Notwithstanding any other provision of law, the department may
assume all rights, duties, and powers of the Board of Directors of
the California Exposition and State Fair if the department determines
there is insufficient fiscal or administrative control. The board of
directors shall again exercise these rights, duties, and powers when
the department determines that the fair has been restored to
solvency and is in compliance with this section.
(d) The department may petition a court of competent jurisdiction
for an order appointing the department, or a person designated by the
department, as a receiver if it determines that the California
Exposition and State Fair is insolvent, or is in imminent danger of
insolvency. The court shall appoint a receiver upon showing that the
fair is insolvent, or is in imminent danger of insolvency.
(e) For the purposes of this section, "insolvency" means that the
California Exposition and State Fair is unable to discharge its debts
as they become due in the usual course of business.
(f) The General Fund and the Fairs and Exposition Fund shall be
held harmless from any debts, liabilities, settlements, judgments, or
liens incurred by the California Exposition and State Fair,
including any deficiency in operating funds.

19622.3. (a) The authority of the Department of Food and
Agriculture shall include, but is not limited to, requiring district
agricultural associations to meet all applicable standards prescribed
by the Department of Food and Agriculture.
(b) The department may delegate approval authority for such
matters as the department may determine to the board of directors if
the board complies with this section. The department shall report
annually to the Joint Committee on Fairs Allocation and
Classification the names of fairs that are delegated that authority.
(c) Notwithstanding any other provision of law, and in order to
protect the integrity of the Fair and Exposition Fund, the department
may assume any or all rights, duties, and powers of the board of
directors of a district agricultural association if the department
reasonably determines that there is insufficient fiscal or
administrative control. The board of directors shall again exercise
these rights, duties, and powers when the department determines that
the fair is in compliance with this section. The department shall
report annually to the Joint Committee on Fairs Allocation and
Classification the names of fairs with respect to which the
department has taken the action prescribed in this subdivision and
subdivision (d).
(d) The department may petition a court of competent jurisdiction
for an order appointing the department, or a person designated by the
department, as a receiver if it determines that the fair is
insolvent, or is in imminent danger of insolvency. The court shall
appoint a receiver upon a showing that the fair is insolvent, or is
in imminent danger of insolvency.
(e) For the purposes of this section, "insolvency" means that the
district agricultural association is unable to discharge its debts as
they become due in the usual course of business.

19622.4. The authority of the Department of Food and Agriculture
shall include, but is not limited to, requiring county fairs and
citrus fruit fairs to do all of the following:
(a) Meet all applicable standards prescribed by the Department of
Food and Agriculture.
(b) Submit to the department for review and approval every five
years a written agreement specifying the operational, financial, and
administrative responsibilities between the entity producing the fair
and the host county, or the host agency.

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.

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.

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.

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.

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) 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.

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.

19631. Notwithstanding any other provision of law, the 1-A District
Agricultural Association may, with the approval of the Department of
Food and Agriculture, expend any money available for expenditure by
it, for construction, repairs, and equipment.

19632. All license fees for conducting horseracing meetings, other
than those attributable to breakage, not payable into the Fair and
Exposition Fund shall be paid as follows:
(a) During each fiscal year there shall be paid into the Wildlife
Restoration Fund, which fund is hereby continued in existence, to
carry out the provisions of the Wildlife Conservation Act of 1947,
the sum of seven hundred fifty thousand dollars ($750,000).
(b) During each fiscal year there is appropriated to the
Department of Education the sum of five hundred thousand dollars
($500,000), or so much thereof as may be requested by the
Superintendent of Public Instruction, to maintain and strengthen
statewide secondary vocational student organizations authorized and
sponsored by the Department of Education in agriculture, business,
home economics, and industrial education. The Superintendent of
Public Instruction shall develop a budget procedure for the
disbursement of funds appropriated under this section to ensure equal
treatment of participating students and to further ensure that such
funds do not supplant existing money currently provided from other
public sources. The appropriated money shall be used for the
following purposes:
(1) Improving the ability of the Department of Education to equip
vocational education students with competencies necessary to enter
the labor market and to assume successful roles in society by
conducting leadership development programs for student officers;
preparing instructional materials for teacher advisors; maintaining
student membership and financial records; giving in-service training
to the vocational teachers who advise the student organizations;
maintaining affiliation with national vocational student
organizations; and supplying support services necessary to carry out
these activities.
(2) Training and preparing new and future vocational education
teachers to organize, manage, and conduct vocational education
student organization activities as an instructional strategy in the
vocational curriculum by providing an opportunity for their
involvement in actual participatory experiences in vocational student
organization activities and by conducting college and university
workshops to accomplish this purpose.
(3) Training and preparing vocational students to take an active
part in developing and participating in vocational fairs and other
activities related to fairs for the purpose specified in Section
51004 of the Education Code by cooperating with the Department of
Food and Agriculture to conduct annually a statewide workshop for
this purpose.
The Department of Education shall include within the report
required pursuant to subdivision (a) of Section 8007.5 of the
Education Code, a report on the activities funded pursuant to this
subdivision.
(c) Except as otherwise provided by this article, the remainder
shall be paid into the General Fund in the State Treasury.

19632.5. (a) After the payments required pursuant to subdivisions
(a) and (b) of Section 19632, but prior to any payments pursuant to
subdivision (c) of that section, ten million dollars ($10,000,000) of
the license fees specified in Section 19632 shall be deposited in a
special account in the Fair and Exposition Fund and those moneys,
including any earnings on the moneys so deposited, shall be used
solely by the 51st District Agricultural Association for the
acquisition or development, or both, of a fairgrounds site.
(b) The moneys in the account are hereby appropriated, without
regard to fiscal years, to the 51st District Agricultural Association
for the purpose specified in subdivision (a), to be expended, with
the approval of the Division of Fairs and Expositions in the
Department of Food and Agriculture, on the basis of 34 percent money
from the account and 66 percent matching money from cities, counties,
special districts, or other units of government or from any source
other than the account. Matching funds may be in the form of cash or
any other form acceptable to the district. If the matching funds are
in a form other than cash, they shall be approved by the Assistant
Director of Food and Agriculture in charge of the Division of Fairs
and Expositions prior to expenditure.
(c) Any earnings in the account, from inception, shall be
transferred to the 51st District Agricultural Association on a pro
rata basis as funds are paid out of the account, in 5 percent
increments, corresponding to the percentage paid out pursuant to
subdivision (b).

19632.6. (a) If the moneys provided for in subdivision (b) of
Section 19632.5, including matching funds, are less than the total
amount of funds determined as proper for the acquisition and
development of a fairgrounds site in the study carried out pursuant
to subdivision (a) of Section 1 of Chapter 647 of the Statutes of
1980, commencing on June 30, 1992, and on June 30th annually
thereafter, the Controller shall apportion for the fiscal year ending
on that date, until that difference is eliminated, 1 percent of the
revenues paid to the state, which exceed the revenues paid to the
state during the 1983-84 fiscal year, under Article 4 (commencing
with Section 6870) from tide and submerged lands and deposit that
amount in the special account in the Fair and Exposition Fund created
by subdivision (a) of Section 19632.5 for expenditure pursuant to
that section.
(b) The funds appropriated and allocated in this section are
subject to reappropriation or allocation in any fiscal year by the
Budget Act for that year; and if the Budget Act for any fiscal year
reappropriates or reallocates the funds provided for in this section,
the appropriation and allocation in this act shall be inoperative
for that fiscal year.

19635. During each of the Fiscal Years 1951-52, 1952-53, and
1953-54, out of the license fees for conducting horse racing meetings
not payable into the Fair and Exposition Fund, the Wildlife
Restoration Fund, or the State College Fund, there is appropriated to
the California State Polytechnic College for permanent improvements
at the Kellogg and Voorhis Units the sum of one million dollars
($1,000,000), and the remainder shall be paid into the General Fund
in the State Treasury.
The amounts appropriated by this section shall be transferred to
the Capital Outlay and Savings Fund, but the permanent improvements
mentioned shall be deferred and no expenditures made therefor until
or unless authorized by other legislation.
The amounts appropriated by this section shall be available for
expenditure without regard to fiscal year.

19636. All money appropriated pursuant to this article to the
California Exposition and State Fair, the Los Angeles County Fair,
the Sixth District Agricultural Association, known and designated as
the California Science Center, the citrus fruit fairs defined in
Section 4603 of the Food and Agricultural Code, and the 1-A District
Agricultural Association, is exempt from Section 16304 of the
Government Code, and shall remain available for expenditure from year
to year until expended.

19637. Appropriations and allocations from the Fair and Exposition
Fund made pursuant to this article, other than those made under
subdivision (b) of Section 19620 are exempt from the provisions of
Section 16304 of the Government Code. The date of such executive
order is deemed to be the date when the appropriation becomes
available for expenditure.
All appropriations and allocations made by this article which are
not exempted by this section from the provisions of Section 16304 of
the Government Code are subject to those provisions.

19638. The Controller shall pay from the fund to the 1-A District
Agricultural Association the appropriation for the support of that
organization.

19638.5. The Controller shall pay from the fund to the 48th
District Agricultural Association the appropriation for its support.

19639. The books and records of any county or citrus fruit fair or
exposition receiving an appropriation or an allocation from the Fair
and Exposition Fund, insofar as they relate to revenues and
expenditures for fair or exposition purposes, may be audited by the
Department of Finance.
When any county or citrus fruit fair or exposition receiving an
appropriation or allocation from the Fair and Exposition Fund
contracts with an association to conduct such fair or exposition, the
contract shall include a provision that the books and records of
such association shall be subject to audit by the Department of
Finance at the discretion of the department.

19640. All money representing penalties or fines imposed by the
stewards of a horse race meeting shall be collected by the licensee
of the meeting and paid to the board within 10 days after its close,
and the board shall deposit all such money in the State Treasury to
the credit of the General Fund.

19641. (a) Except as provided in subdivision (b), any
redistributable money in a parimutuel pool subject to payment to a
claimant pursuant to Section 19598, but not successfully claimed
within that period, shall be paid to the board, as follows:
(1) An estimated payment equal to 20 percent of the preceding year'
s unclaimed redistributable money paid pursuant to this subdivision
shall be paid to the board on July 1, October 1, January 1, and April
1, or the next business day thereafter.
(2) On May 30, or the next business day thereafter, of the year
following the close of any horseracing meeting, the association shall
pay to the board all of the redistributable funds that are owed it
pursuant to this subdivision, less any estimated payments made
pursuant to paragraph (1).
The money received by the board under this subdivision resulting
from thoroughbred, harness, or quarter horse meetings, but excluding
the meetings of the California Exposition and State Fair or of a
county, district agricultural association, or citrus fruit fair,
shall be used by the board to support research on matters pertaining
to horseracing and racetrack security, but this money is subject to
annual budgetary review by the Legislature. All of the
redistributable money received by the board from other meetings shall
be paid immediately into the State Treasury to the credit of the
General Fund.
(b) One-half of the redistributable money resulting from the
thoroughbred, harness, or quarter horse meetings, but excluding the
meetings of the California Exposition and State Fair or county,
district agricultural association, or citrus fruit fair meetings,
shall be distributed to a welfare fund established for the benefit of
horsemen and backstretch personnel, as follows:
(1) An estimated payment equal to 20 percent of the preceding year'
s unclaimed redistributable money distributed pursuant to this
subdivision shall be distributed to the welfare fund on July 1,
October 1, January 1, and April 1, or the next business day
thereafter.
(2) On May 30, or the next business day thereafter, of the year
following the close of any horseracing meeting, the association shall
pay to the welfare fund all of the redistributable funds that are
owed it pursuant to this subdivision, less any estimated payments
made pursuant to paragraph (1).
The welfare fund shall make an accounting to the board within one
calendar year of the receipt of the payment.
(c) Except as provided in subdivision (a) or (b), any remaining
redistributable money in a parimutuel pool subject to payment to a
claimant pursuant to Section 19598, but not successfully claimed
within the period specified in that section, shall be distributed
one-half to the board, for the purposes specified and in the manner
specified in subdivision (a), and one-half to the welfare fund
established by the horsemen's organization described in subdivision
(b) in the manner specified in subdivision (b).

19641.2. (a) The nonprofit foundation authorized to receive funds
pursuant to Section 19641 shall use those funds to administer a
health and welfare trust fund without prejudice and for the benefit
of every eligible person. The officers and directors of the health
and welfare trust fund shall have a fiduciary responsibility to
manage the fund for the benefit of the beneficiaries.
(b) Every employer of backstretch workers shall, upon request,
submit in writing or electronically to the administrator of the
welfare program for backstretch workers any employment records
necessary for prompt payment of benefits and proper administration of
the program. Upon request, employers shall also provide to the
administrator access to any employment records necessary for prompt
payment of benefits and proper administration of the program.
(c) At least one member of the health and welfare fund board shall
be a member without financial interest in the horse racing industry
appointed from a list of nominees submitted jointly by the California
State Council of the Service Employees International Union, the
Jockey's Guild, and the California Teamsters Public Affairs Council.
(d) Nothing in this section is intended to affect the status of
the welfare fund as a charity under Section 501(c)(3) of the federal
Internal Revenue Code or its compliance with the Charitable Purposes
Act (Article 7 (commencing with Section 12580) of Chapter 6 of Part 2
of Division 3 of Title 2 of the Government Code).

19642. Cash vouchers that are not redeemed within 365 days of the
close of the racing meeting at which the voucher was purchased shall
be distributed to a nonprofit organization designated by the board
for purposes of maintaining a data base of horseracing information to
further the purposes of Section 19444.

19642.1. In addition to the distributions specified in Sections
19605.7, 19605.71, and 19605.72, from the amounts that would normally
be available for commissions and purses from wagering on all breeds,
an amount not to exceed 0.05 percent of the total amount handled by
each satellite wagering facility shall be distributed to the
nonprofit organization designated by the board for purposes of
maintaining a database of horse racing information to further the
purposes of Section 19444. The amount distributable to the nonprofit
organization initially shall be 0.05 percent of the total amount
handled by each satellite wagering facility and may be adjusted by
the board, in its discretion. The nonprofit organization shall
annually submit its budget for the ensuing calendar year to the board
at its November meeting and shall file quarterly financial
statements with the board.