Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Agriculture & Natural Resources Committee

SB 6368

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Bill

Modifies the definition and purpose of agricultural fairs to include the promotion of rural economic development.
Modifies the percentages of the Fair Fund that may be allocated to agricultural fairs and to expenses incurred in the course of administering the Fair Fund.
Authorizes funds from the Fair Fund to be used for expenses incurred in the operation of fairs.
Condenses the terms of appointment for members of the Fairs Commission to a uniform three-year appointment for all members.
Allows fairs to maintain eligibility for allocations from the Fair Fund in the event a fair is not held due to a natural disaster.

Background:

Agricultural Fairs.

Agricultural fairs are fairs or exhibitions intended to promote agriculture by including, among other things, a balanced variety of exhibits of livestock and agricultural products. Agricultural fairs are divided into four categories. "Area fairs" are organized to serve an area larger than one county. "County and district fairs" are organized to serve the interests of certain single counties. "Community fairs" are organized primarily to serve a smaller area than an area fair or county fair. "Youth shows and fairs" serve three or more counties, educate and train rural youth, and are approved by Washington State University or the Office of the Superintendent of Public Instruction.

Fair Fund.

State law requires that each fiscal year the State Treasurer transfer $2 million from the General Fund into the Fair Fund, except that the amount was reduced to $1.3 million in fiscal year 2011, and to $1.75 million in fiscal years 2012 and 2013.

Qualifying agricultural fairs are eligible to receive allocations from the Fair Fund after conducting two successful, consecutive annual fairs. With the exception of county fairs and some youth fairs, all allocations must be made only as reimbursement for premiums or prizes awarded to fair participants.

The Director of the Washington State Department of Agriculture (WSDA) may allocate up to 85 percent of the Fair Fund to participating agricultural fairs. The remaining 15 percent may be used for special assistance to any participating fair or for administrative expenses incurred in the course of administering the Fair Fund, except that no more than 5 percent may be used for administrative expenses.

Fairs Commission.

The Fairs Commission acts as an advisory committee to the Director of the WSDA and assists in the preparation of the merit rating used to determine merit based allocations. The Fairs Commission consists of the Director of the WSDA as ex officio member and chair, three members from each side of the Cascades, and a member at large. Members are initially appointed for one, two, and three year terms by the Director. Thereafter appointments are made for three year terms.

Summary of Bill:

The definition and the purpose of agricultural fairs are modified to include the promotion of rural economic development.

The direction to the State Treasurer to transfer certain sums from the General Fund to the Fair Fund in fiscal years 2011, 2012, and 2013 is removed. The direction to the State Treasurer to transfer from the General Fund to the Fair Fund the sum of $2 million each fiscal year is retained.

The Director of the WSDA is authorized to waive the requirement that a fair have conducted two consecutive fairs in order to be eligible for funding from the Fair Fund, where a county fair reorganizing as an area fair has received an allocation from the Fair Fund as a county fair for at least two years, or where a fair is not held due to a natural disaster.

Allocations from the Fair Fund may be used for expenses incurred in the operation of fairs.

The allowable allocations from the Fair Fund are modified. The WSDA is authorized to allocate 95 percent of the Fair Fund to agricultural fairs that apply for such funds. The WSDA may use up to 10 percent of the amount allocated to agricultural fairs that apply for funds from the Fair Fund for special assistance to any participating fair or fairs. The WSDA is authorized to allocate the remaining 5 percent of the Fair Fund for expenses incurred in the course of administering the Fair Fund, which may include the Fair Commission expenses approved by the Director of the WSDA.

Fairs Commission.

The terms of appointment for members of the Fairs Commission are consolidated to a uniform three-year appointment for all members, except that an appointment filling a vacancy is for the remainder of the original term.