Bill Text: CA SB624 | 2023-2024 | Regular Session | Amended
Bill Title: Horse racing: state-designated fairs: allocation of revenues: gross receipts for sales and use tax.
Spectrum: Partisan Bill (Democrat 6-0)
Status: (Engrossed) 2023-07-10 - July 10 hearing. Held in committee and under submission. [SB624 Detail]
Download: California-2023-SB624-Amended.html
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Amended
IN
Assembly
June 26, 2023 |
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Amended
IN
Assembly
May 25, 2023 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Senate Bill
No. 624
| Introduced by Senator Alvarado-Gil (Coauthors: Senators Hurtado, McGuire and Min) (Coauthors: Assembly Members Bains and Blanca Rubio) |
February 16, 2023 |
An act to amend Sections 19620.1, 19620.15, and 19620.2, 19620.2 of the Business and Professions Code, relating to horse racing, and making an appropriation therefor. therefor, and declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 624, as amended, Alvarado-Gil.
Horse racing: state-designated fairs: allocation of revenues: gross receipts for sales and use tax.
Existing law requires a tax return filed with the California Department of Tax and Fee Administration (CDTFA) that reports gross receipts for sales and use tax purposes to segregate the gross receipts of the seller and the sales price of the property on a line or a separate form when the place of sale in this state or for use in this state is on or within the real property of a state-designated fair, as defined, or any real property of a state-designated fair that is leased to another party. Existing law requires, on or before November 1 of each year, the CDTFA to report to the Department of Finance the amount of the total gross receipts segregated on these tax returns for the prior fiscal year, and that 3/4 of 1% of the total gross receipts be included in the next annual Governor’s
Budget for use by the Department of Food and Agriculture for allocation to fairs and that those funds be transferred by the Controller to the Fair and Exposition Fund, which is continuously appropriated, as prescribed. Existing law provides that certain revenues deposited into the Fair and Exposition Fund are appropriated without regard to fiscal years for allocation by the Secretary of Food and Agriculture for capital outlay to California fairs, as specified.
This bill would increase the amount of the total gross receipts required to be included in the next annual Governor’s Budget for use by the Department of Food and Agriculture and transferred to the Fair and Exposition Fund, as specified, from 3/4 of 1% to 3.5%. From the funds subject to allocation by the Secretary of Food and Agriculture for capital outlay to California fairs, which the bill would increase by
adding this 3.5% gross receipts transfer, the bill would require, each fiscal year, the sum of $2,500,000, or an amount equal to 5% of the fund, whichever is greater, to be paid to the department for purposes of providing administrative services to fairs, as specified. The bill would also require, each fiscal year, from the amounts available in the Fair and Exposition Fund after the payment made to the department, the sum of $500,000 to be paid to the nonprofit organization representing all fairs in the network of California fairs for purposes of providing services to fairs, as specified. The bill would make other nonsubstantive changes regarding appropriations to the department for fairs.
This bill would require the Secretary of Food and Agriculture, by May 15 of each year, to prepare an annual expenditure plan for funds from the Fair and Exposition Fund for review and approval by the Joint Committee on Fairs Allocation and Classification, as provided.
By increasing the amounts to be deposited into the Fair and Exposition Fund, which is continuously appropriated, and by appropriating these amounts for new purposes, the bill would make an appropriation.
This bill would declare that it is to take effect immediately as an urgency statute.
Digest Key
Vote: 2/3 Appropriation: YES Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
The Legislature finds and declares that fairgrounds serve the needs of the citizens of California in times of emergency by assisting federal, state, and local public health and safety agencies with emergency preparedness and response, and in times of celebration by providing a focal point for cultural, educational, and social interaction for the people of their local communities throughout the state.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, 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 the auditing of all district agricultural association fairs, county fairs, and citrus fruit fairs.
SEC. 3.
Section 19620.15 of the Business and Professions Code is amended to read:19620.15.
(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 state-designated fair or any real property of a state-designated fair that is leased to another party.(b) For purposes of this section, “state-designated fair” means a state-designated fair as defined in Sections 19418, 19418.1, 19418.2, and 19418.3.
(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 3.5 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 19620.2. 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 19620.2.
(f) The CDTFA shall be paid the actual cost for administering
the provisions of this section from the funds appropriated pursuant to subdivision (e) before any allocation is made to fairs in accordance with Section 19620.2.
(g) (1) Any revenues deposited into the Fair and Exposition Fund pursuant to this section shall only be allocated to a state-designated fair if nonmanagement employees at that state-designated fair, or nonmanagement employees at any real
property of that state-designated 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 eight hours in one workday, any work in excess of 40 hours in any one workweek, and the first eight 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 shall not apply to full-time carnival ride operators employed by a traveling carnival.
(3) For purposes of this subdivision, an employee shall 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.
SEC. 4.
Section 19620.2 of the Business and Professions Code is amended to read:19620.2.
(a) Any unallocated balance from Sections 19606.1 and 19620.1, revenue deposited into the Fair and Exposition Fund pursuant to Sections 19614 and 19620.15, 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.
(c) Each fiscal year, from the funds subject to allocation pursuant to subdivision (a), the sum of two million five hundred thousand dollars ($2,500,000), or an amount equal to 5 percent of
the fund, whichever is greater, shall be paid to the Department of Food and Agriculture for purposes of providing administrative services to fairs as specified in Section 19620.
(d) Each fiscal year, from the amounts available in the Fair and Exposition Fund after the payment made pursuant to subdivision (c), the sum of five hundred thousand dollars ($500,000), adjusted annually for inflation with the approval of the Secretary of Food and Agriculture, shall be paid to the nonprofit organization representing all fairs in the network of California fairs for purposes of providing services to fairs, including professional leadership development and training, education, advocacy, communication, technical advice, networking opportunities, and other professional services to help fairgrounds continue to be vibrant and relevant community venues.
(e) By May 15 of each year year, 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 committee shall review and concur or not concur with the spending plan in its entirety, and may not add to, or delete, projects, or line items from the expenditure plan. The expenditure plan shall be deemed approved 30 days after it is received, unless it is rejected by the committee.
(f) If the Joint Committee on Fairs Allocation and Classification does
not concur with the Secretary of Food and Agriculture’s recommendations, the secretary may submit another set of recommendations that incorporate the committee’s review and
suggestions. The committee shall approve the resubmitted expenditure plan no later than June 30 of each year to meet the needs of the Department of Food and Agriculture and the network of California fairs.
SEC. 5.
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 California Constitution and shall go into immediate effect. The facts constituting the necessity are:In order to ensure that fairground infrastructure is financially solvent and available for emergency management activities, it is necessary for this act to take effect immediately.
