March 28, 2016

The Honorable Adam Gray Member, California State Assembly State Capitol, Room 5126 Sacramento, CA 95814

RE: Assembly Bill 2678 - SUPPORT

Dear Assembly Member Gray:

On behalf of the Rural County Representatives of California (RCRC), I am writing in support of your Assembly Bill 2678 which would dedicate the State portion of the sales and use tax collected from transactions at fairgrounds to support small - and medium-sized fairs. RCRC is an association of thirty-five rural California counties and the RCRC Board of Directors is comprised of elected supervisors from each of those member counties.

The health and viability of each county’s local fair and fairgrounds – whether state-owned/operated or county-owned - is a high priority of our member counties. These fairs and fairgrounds are an integral asset to many counties throughout the State, particularly in rural California. The property is utilized throughout the year for numerous community events and livestock auctions among other activities.

Additionally, these properties are utilized by the California Department of Forestry and Fire Protection and others as an evacuation center and public safety command center during catastrophic wildfires and other emergencies. For example, the Napa County Fairgrounds provided shelter in place for over 800 people within less than two hours during the Valley Fire in Lake County this past summer.

Prior to the most recent fiscal years, state fairs received approximately $30 million in financial assistance from the State – either proceeds from horse race wagering or State General Fund support. Due to the lack of funding in recent years, many fairs and fairgrounds – particularly in rural areas - are on the brink of elimination. The $6.6 million for the support of local fairs ($2.6 million) and capital improvement projects ($4 million) as outlined in the Governor’s 2016-17 State Budget proposal will provide needed assistance to both the fairs and fairgrounds that continue to struggle.

The Honorable Adam Gray Assembly Bill 2678 March 28, 2016 Page 2

Many of the fairgrounds that serve such a critical role for the State and local community in which they are located remain in jeopardy without a sustainable source of funding. AB 2678 would be a critical link in providing that long-term sustainable funding for the operations of the fairgrounds.

This dedicated revenue stream that is derived solely from the fairs would be a significant step in assuring the long-term viability of the networks of fairs and the fairgrounds.

RCRC appreciates your leadership on this issue and looks forward to the successful passage of AB 2678. If you should have any questions or concerns, please do not hesitate to contact me at (916) 447-4806.

Sincerely,

PAUL A. SMITH Senior Legislative Advocate

cc: Members of the Assembly Revenue & Taxation Committee The Honorable Mike McGuire, Member of the State Senate The Honorable Frank Bigelow, Member of the State Assembly The Honorable James Gallagher, Member of the State Assembly The Honorable Devon Mathis, Member of the State Assembly The Honorable Jim Wood, Member of the State Assembly