4051-4060

FOOD AND AGRICULTURAL CODE
SECTION 4051-4060




4051.  An association, with the approval of both the Department of
Food and Agriculture and the Department of General Services, 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 public park, 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.



4051.1.  (a) Notwithstanding any other provision of law, in
accordance with procedures established by the board, the board may
enter into agreements to secure donations, memberships, and corporate
and individual sponsorships, and may enter into marketing and
licensing agreements for the receipt of money, or services or
products in lieu of money, and may employ, or create and participate
in an entity, or enter into an agreement with an entity or person to
develop, solicit, sell, and service these agreements. The
compensation for the entity or person shall be established by the
board.
   (b) Written notification to the department shall be required prior
to creating an entity for the activities described in this section
and prior to entering into any agreement for activities described in
this section if the agreement exceeds one hundred thousand dollars
($100,000) in value, exists for a period of greater than two years,
or contemplates the building of a permanent structure on fair
property. The department may, upon reasonable notice, examine the
books and records of any entity created pursuant to this section.




4051.2.  An association shall not enter into a settlement agreement
for an amount greater than ten thousand dollars ($10,000) without the
prior approval of the department.



4052.  An association shall not lease its racetrack for running
races of horses to any private person, firm, or corporation, except
to a national or international exposition or its affiliated
corporations or associations for the period of time which is now
permitted by law for fairs.



4053.  The Director of Food and Agriculture may make available for
the use of any association any property of the state which is
suitable for the purposes of the association and which has been
obtained by the state by gift from any county or city, or otherwise,
without cost to the state.



4054.  (a) If the board of an association, by resolution adopted by
vote of two-thirds of all its members, finds and determines that the
public interest and necessity require the acquisition of any building
or improvement that is situated on property that is owned by the
association, in trust or otherwise, or of any outstanding rights to
that property, with the approval of the department and the
association, the building, improvement, or outstanding rights may be
acquired by eminent domain pursuant to the Property Acquisition Law
(Part 11 (commencing with Section 15850) of Division 3 of Title 2 of
the Government Code).
   (b) The use by the association of its property shall be considered
a more necessary public use than the use of the property by any
grantee, lessee, or licensee for the purposes that are specified in
Section 4051.
   (c) Notwithstanding Article 5 (commencing with Section 25450) of
Chapter 5 of Division 2 of Title 3 of the Government Code, or
Sections 10108 and 10308 of the Public Contract Code, the board of an
association or governing board of a county fair, by resolution
adopted by vote of two-thirds of all its members, may purchase
materials and lease equipment for not in excess of twenty thousand
dollars ($20,000) when the purchase or lease is made in conjunction
with donated labor construction improvements on the grounds of the
association or the county fairgrounds, respectively.



4055.  Associations, by majority vote of their respective boards,
may cooperate in the holding of a fair in any of the districts.



4056.  An association may pay membership fees, and join and
participate in the affairs of any organization which has the
following purposes:
   (a) Interchange of information that relates to livestock, poultry,
and other agricultural animals and products.
   (b) Conduct and management of fairs.
   (c) Conducting of horseracing meetings.
   An association may also pay membership fees, join and participate
in affairs of any similar organization that deals with subjects that
are related to powers and duties of the association.



4057.  The state is not liable for any premium which is offered or
award that is made, or on account of any contract which is made, by
any association.


4058.  (a) Notwithstanding Section 4052, the California Exposition
and State Fair, a district agricultural association fair, or county
fair in the northern zone, with the approval of the Department of
Food and Agriculture, may form an entity for conducting combined fair
horseracing meetings and utilize their racing facilities for
conducting horseracing meetings, with parimutuel wagering, on days
other than the days on which general fair activities are conducted. A
combined fair horseracing meeting pursuant to this section shall be
a general fair activity for the purpose of Section 19549 of the
Business and Professions Code.
   (b) The association shall designate certain days of a mixed breed
meeting held pursuant to this section as charity days with the
proceeds therefrom to be distributed in accordance with Sections
19550 and 19556 of the Business and Professions Code.
   (c) The association shall encourage the racing of emerging breeds
of horses.



4059.  (a) (1) Notwithstanding any other provision of law, the
Department of Food and Agriculture shall develop criteria to be used,
subject to the approval of the Department of General Services, for
the disposal of property by a district agricultural association and
the California Exposition and State Fair.
   (2) As used in this section, "disposal of property" means the sale
of equipment, materials or other forms of personal property no
longer necessary to effectuate the purposes of the fair and that do
not exceed an estimated fair market value of fifty thousand dollars
($50,000).
   (b) The board of the district agricultural association or
California Exposition and State Fair shall, prior to the disposal of
property, as defined in this section, first be required to determine,
through the Department of Food and Agriculture, if the property can
be used by another fair in the California Fair Network or other state
agency or department. If determined that such use is not possible,
the board of the district agricultural association or California
Exposition and State Fair shall sell the property to the buyer that
submits the highest bid.
   (c) The regular department audit of district agricultural
associations shall confirm the source of funds of any disposed
property and compliance with the criteria developed under this
section for the disposal of property.
   (d) The adoption of the criteria developed pursuant to this
section shall relieve a district agricultural association and the
California Exposition and State Fair of any requirements to abide by
the provisions of the State Administrative Manual which may apply to
disposal of property developed by the Department of General Services.



4060.  (a)  Any compensation to any officer or employee of the state
by any nonprofit corporation formed exclusively to aid and assist an
association, as provided for in Section 18000.5 of the Government
Code, shall be approved by the Division of Fairs and Expositions
prior to payment. The nonprofit corporation shall notify the division
of the compensation.
   (b) The department shall, during regular audits, review the
payments from the nonprofit corporation to any state employees and
those state employees' responsibilities to the nonprofit corporation.
The financial information from the nonprofit corporation shall be
made available to the department for the audit. Any compensation
shall be justified by related work that is not the normal
responsibility of the state officer or employee through his or her
employment by an association, including his or her normal duties and
working hours. The audit shall also determine if any board member
serving on an association is also serving on the board of directors
of the related nonprofit corporation and determine if there are any
conflicts of interest regarding the payment to the association
employees. The audit shall also determine if any officer or employee
is receiving compensation from the nonprofit corporation in violation
of subdivision (c).
   (c) Pursuant to Section 1090 of the Government Code, a state
officer or employee of an association shall not be compensated by the
nonprofit corporation when that state officer or employee acts in an
official capacity with regard to any contract made with the
nonprofit corporation.