CHAPTER 3. Revenue and Fiscal Provisions [3200. - 3224.]

Cal. Food and Agricultural Code - FAC 3.

in effect

Cal. Food and Agricultural Code - FAC § 3200. Section 3200.

All funds appropriated by the Legislature or designated for California fairs and expositions pursuant to this chapter or any other law shall be deposited into the Fair and Exposition Fund and be continuously appropriated pursuant to, and for the purposes of, Sections 3204 and 3205.

Cal. Food and Agricultural Code - FAC § 3201. Section 3201.

(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 3101 to 3104, inclusive, and providing oversight of activities carried out by each California fair. (b) Oversight shall include, but not be limited to, all of 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.

Cal. Food and Agricultural Code - FAC § 3202. Section 3202.

From the total revenue received by the department, 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 Fair and Exposition Fund. (b) For the auditing of all district agricultural association fairs, county fairs, and citrus fruit fairs.

Cal. Food and Agricultural Code - FAC § 3203. Section 3203.

(a) Notwithstanding any other law, a return filed with the California Department of Tax and Fee Administration (CDTFA) to report gross receipts for sales and use tax purposes shall segregate the gross receipts of the seller and the sales price of the property on a line or a separate form as prescribed by the CDTFA when the place of sale in this state or for use in this state is on or within the real property of a fair or any real property of a fair that is leased to another party. (b) For purposes of this section, “fair” means a fair as defined in Section 3101, 3102, 3103, or 3104. (c) The CDTFA shall add a line to a current return form or develop a separate form for purposes of this section. (d) (1) The CDTFA shall report the amount of the total gross receipts segregated on the returns filed for the prior fiscal year pursuant to subdivision (a) to the Department of Finance on or before November 1 of each year. (2) The total gross receipts shall be subject to review by the CDTFA for errors. The review may be a review of a sample of returns. The CDTFA shall note any errors identified in the review and the approximate impact of those errors on the total gross receipts in its report to the Department of Finance to allow an adjusted total gross receipt amount to be determined. (e) An amount equal to 2 percent of the total amount of gross receipts, or adjusted gross receipts, for the prior fiscal year reported to the Department of Finance by the CDTFA as specified in subdivision (d) shall be included in the next annual Governor’s Budget for the Department of Food and Agriculture for allocation to fairs pursuant to Section 3204. No later than 30 days after the enactment of the annual Budget Act, the amount appropriated by the Legislature to the Department of Food and Agriculture pursuant to this section shall be transferred by the Controller to the Fair and Exposition Fund in the State Treasury and shall be continuously appropriated and available to be allocated pursuant to Section 3204. (f) The CDTFA shall be paid the actual cost for administering this section from the funds appropriated pursuant to subdivision (e) before any allocation is made to fairs in accordance with Section 3204. (g) (1) Any revenues deposited into the Fair and Exposition Fund pursuant to this section shall only be allocated to a fair if nonmanagement employees at that fair, or nonmanagement employees at any real property of that fair that is leased to another party, are provided the following working conditions: (A) The employee receives a meal period of not less than 30 minutes for a work period of more than five hours per day, unless the work period per day of the employee is less than six hours and the meal period is waived by mutual consent of both the employer and the employee. (B) The employee receives a second meal period of not less than 30 minutes for a work period of more than 10 hours per day, unless the work period per day of the employee is less than 12 hours, the second meal period is waived by mutual consent of both the employer and the employee, and the first meal period was not waived. (C) Any work in excess of 8 hours in one workday, any work in excess of 40 hours in any one workweek, and the first 8 hours worked on the seventh day of work in any one workweek is compensated at the rate of no less than one and one-half times the regular rate of pay for an employee. (D) Any work in excess of 12 hours in one day is compensated at the rate of no less than twice the regular rate of pay for an employee. (E) Any work in excess of eight hours on any seventh day of a workweek is compensated at the rate of no less than twice the regular rate of pay for an employee. (2) This subdivision does not apply to full-time carnival ride operators employed by a traveling carnival. (3) For purposes of this subdivision, “employee” does not include an employee covered by a valid collective bargaining agreement if that agreement expressly provides for all of the following: (A) Wages, hours of work, and working conditions of the employees. (B) Meal periods for the employees, including final and binding arbitration of disputes concerning application of its meal period provisions. (C) Premium wage rates for all overtime hours worked, and a regular hourly rate of pay of not less than 30 percent more than the state minimum wage.

Cal. Food and Agricultural Code - FAC § 3204. Section 3204.

(a) Any unallocated balance from Section 3202, 3203, or 3205, revenue deposited into the Fair and Exposition Fund pursuant to Section 19614 of the Business and Professions Code, and funding appropriated by the Legislature or otherwise designated for California fairs pursuant to this chapter or any other law 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.

Cal. Food and Agricultural Code - FAC § 3205. Section 3205.

(a) Notwithstanding any other law, at the direction of the Secretary of Food and Agriculture with the concurrence of the Director of Finance, all revenues that are deposited into the Fair and Exposition Fund pursuant to Section 3203 may first be deposited into a separate account in the fund to be known as the California Fairs Trust Account and, notwithstanding Section 13340 of the Government Code, are continuously appropriated from that account to the Department of Food and Agriculture, for allocation by the secretary, at the secretary’s discretion, for the purposes set forth in paragraphs (1) to (4), inclusive. The concurrence of the Director of Finance shall be required for allocations pursuant to paragraph (1). Allocations pursuant to paragraphs (2) to (4), 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 capital improvements at fairgrounds, maintaining facilities at fairs, health, fire and life safety, and emergency services projects, or handicapped access compliance projects at fairgrounds 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 other funds available for allocation pursuant to this chapter to complete projects funded under this paragraph in the priority described in this paragraph. (2) For health, fire and life safety, and emergency services improvement projects at fairs, California Code of Regulations compliance projects, and maintenance projects at fairgrounds that are necessary for public safety and security. (3) For capital improvement projects at fairgrounds. When making determinations to fund capital improvements pursuant to this paragraph, the secretary may grant priority status to renewable energy generation projects or to projects that meet or exceed the standards of the California Environmental Protection Agency. (4) For the payment of expenses incurred in developing and operating revenue generating projects at fairs, or that directly benefit fairs, including the payment of expenses incurred in establishing and operating horse racing and future gaming-related facilities, the establishment of pilot projects to restructure the current fair system, and for projects realizing a cost savings for more efficient use of existing fair resources. (b) The secretary may not make an allocation for purposes of paragraphs (2) to (4), inclusive, of subdivision (a) until the payments required in any fiscal year pursuant to paragraph (1) of subdivision (a) have been funded. (c) Pursuant to subdivision (a), the Joint Committee on Fairs Allocation and Classification shall review and concur, or not concur, with the secretary’s determination of the allocations to be made pursuant to paragraphs (2) to (4), inclusive, of subdivision (a) in total, and the committee shall not add to, or delete projects or line items from, the proposed allocations. (d) Approval of the Joint Committee on Fairs Allocation and Classification shall be 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 resubmit another set of recommendations that consider the committee’s review and suggestions. The resubmitted recommendations shall be deemed approved 30 days after they are received by the committee. (f) The payments required in any fiscal year for the purposes of paragraph (1) of subdivision (a) shall be made before any transfer is made pursuant to subdivision (g). (g) If the revenues deposited into the separate account exceed the amount necessary to satisfy the purposes of subdivision (f) in any fiscal year, the amount remaining shall be transferred to the Fair and Exposition Fund for allocation in accordance with Section 3204. (h) All of the costs of administering the account created by subdivision (a) shall be charged to the account.

Cal. Food and Agricultural Code - FAC § 3206. Section 3206.

All revenues payable to the state and deposited in a separate account in the fund pursuant to Section 3205 that are allocated by the secretary for the purposes of paragraph (1) of subdivision (a) of Section 3205 are hereby pledged for the repayment of the principal of, and interest on, bonds issued by a joint powers agency, or of other debt service or expense incurred for the purposes described in that paragraph.

Cal. Food and Agricultural Code - FAC § 3207. Section 3207.

(a) Any joint powers agency requesting money in connection with the issuance of bonds for the purposes described in paragraph (1) of subdivision (a) of Section 3205 shall file an application with the secretary, in the form required by the secretary. (b) The secretary shall, upon review of the applications, prepare a statement of allocation of money to the joint powers agency, in the priority the secretary deems appropriate. (c) The secretary shall adopt regulations governing the allocation procedures to be followed in implementing this section.

Cal. Food and Agricultural Code - FAC § 3208. Section 3208.

It is the intent of the Legislature in enacting Sections 3206, 3207, and 3209 to provide the revenues necessary for the financing by joint powers agencies of the described facilities and projects, which shall be deemed to be public capital improvements within the meaning of Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code. Deposits into the account in the fund in accordance with paragraph (1) of subdivision (a) of Section 3205 shall continue through and include either the 20th year after the initial calendar year in which the revenues are collected, or whatever period of time is necessary to repay any borrowings of the joint powers funding mechanism.

Cal. Food and Agricultural Code - FAC § 3209. Section 3209.

(a) The State of California does hereby pledge to and agree with the holders of any bonds or other indebtedness issued, and with those joint powers agencies that may enter into project agreements with fairs or other third parties or authorize bonds or other indebtedness to be issued, in reliance on the revenue and deposits set forth in Section 3203 or the allocations set forth in subdivision (a) of Section 3205, that the state will not alter or change the structure of funding and deposits set forth in, or the pledge of funds for, debt service, security, including any coverage factors, and expenses, pursuant to those sections until the bonds and other indebtedness are fully paid or discharged and the project is fully performed or discharged. However, nothing precludes any alteration or change if and when adequate provision has been made by law for the protection from impairment of the contracts represented by the bonds, other indebtedness and projects, and the right to so alter or change is hereby reserved. Joint powers agencies may include this pledge and undertaking of the state in the bonds, agreements evidencing other indebtedness, and project agreements. (b) The provisions of this chapter related to the issuance of bonds pursuant to Sections 3205 to 3209, inclusive, insofar as they are substantially the same as existing code provisions relating to the same subject matter, shall be construed as restatements and continuations thereof, and not as new enactments.

Cal. Food and Agricultural Code - FAC § 3210. Section 3210.

(a) Notwithstanding any other law, neither the state nor the department 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 3214. (b) 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 their 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.

Cal. Food and Agricultural Code - FAC § 3211. Section 3211.

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

Cal. Food and Agricultural Code - FAC § 3212. Section 3212.

(a) In order to maintain their eligibility to receive funds or to utilize state assets, the fairs specified in Section 3101 shall do all of the following: (1) File an annual statement of operations with the department. (2) Conduct an annual fair that includes agriculture and other community-relevant exhibits and competitions. (b) The department 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.

Cal. Food and Agricultural Code - FAC § 3213. Section 3213.

(a) The authority of the department 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 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 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 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.

Cal. Food and Agricultural Code - FAC § 3214. Section 3214.

(a) The authority of the department shall include, but is not limited to, requiring district agricultural associations to meet all applicable standards prescribed by the department. (b) The department may delegate approval authority for matters as the department may determine to the board of directors if the board complies with this section. (c) Notwithstanding any other 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. (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 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.

Cal. Food and Agricultural Code - FAC § 3215. Section 3215.

The authority of the department 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. (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.

Cal. Food and Agricultural Code - FAC § 3216. Section 3216.

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.

Cal. Food and Agricultural Code - FAC § 3217. Section 3217.

(a) Notwithstanding Section 3216, any unanticipated revenues, other than any allocation from the state, that are in excess of the approved budget for any fiscal or calendar year of any California fair shall be retained by that fair. (b) These funds may be expended, without regard to any fiscal year, by any fair to which Section 3216 applies, upon approval by the board of directors of that fair, which shall be recorded in the official minutes of the fair approving a plan of expenditure.

Cal. Food and Agricultural Code - FAC § 3218. Section 3218.

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.

Cal. Food and Agricultural Code - FAC § 3219. Section 3219.

The department 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.

Cal. Food and Agricultural Code - FAC § 3220. Section 3220.

Notwithstanding any other law, any fair qualified to receive an allocation that has complied with the requirements set forth in subdivision (b) of Section 3212, with the approval of the department, may expend available funds for the construction or operation of recreational and cultural facilities of general public interest.

Cal. Food and Agricultural Code - FAC § 3221. Section 3221.

Notwithstanding any other law, the 1-A District Agricultural Association may, with the approval of the department, expend any money available for expenditure by the association, for construction, repairs, and equipment.

Cal. Food and Agricultural Code - FAC § 3222. Section 3222.

All money appropriated pursuant to this chapter to the California Exposition and State Fair, the Los Angeles County Fair, the Sixth District Agricultural Association, known and designated as Exposition Park, the citrus fruit fairs, as defined in Section 4603, 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.

Cal. Food and Agricultural Code - FAC § 3223. Section 3223.

(a) Appropriations and allocations from the Fair and Exposition Fund made pursuant to this chapter, other than those made under subdivision (b) of Section 3201, are exempt from Section 16304 of the Government Code. The date of the executive order is deemed to be the date when the appropriation becomes available for expenditure. (b) All appropriations and allocations made by this article that are not exempted by this section from Section 16304 of the Government Code are subject to that section.

Cal. Food and Agricultural Code - FAC § 3224. Section 3224.

(a) 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. (b) 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 the fair or exposition, the contract shall include a provision that the books and records of the association shall be subject to audit by the Department of Finance at the discretion of the department.

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026