Existing sales and use tax laws impose a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state of, or on the storage, use, or other consumption in this state of, tangible personal property purchased from a retailer for storage, use, or other consumption in this state. Existing law provides various exemptions from those taxes, including an exemption for the sale of, or the storage, use, or other consumption of, tangible personal property purchased by the San Diego Air & Space Museum and the California Science Center if the property is purchased and used exclusively for display purposes within the museum, as provided.

This bill would additionally exempt from those taxes tangible personal property purchased by the Jimmy Doolittle Air and Space Museum Education Foundation for those purposes. The bill would also make a nonsubstantive change.

The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes cities and counties to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing law authorizes districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws.

Existing law requires the state to reimburse cities and counties for revenue losses caused by the enactment of sales and use tax exemptions.

This bill would provide that, notwithstanding these provisions, no appropriation is made and the state shall not reimburse cities and counties for sales and use tax revenues lost by them pursuant to this bill.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Jimmy Doolittle Air and Space Museum Education Foundation.

This bill would take effect immediately as a tax levy.

Existing law, the California Retail Food Code, establishes uniform health and sanitation standards for retail food facilities, including temporary food facilities, by the State Department of Public Health. Existing law provides that local health agencies are primarily responsible for enforcing this code. A violation of any provision of the code is generally punishable as a misdemeanor. Existing law requires temporary food facilities that operate at a community event to meet specified requirements, and defines community event for these purposes. purposes to mean an event that is of a civil, political, public, or educational nature, including state and county fairs.

This bill would require a temporary food facility to be granted a permit to operate at a community event if the enforcement agency makes a determination that the temporary food facility meets specified requirements, and would require the permit to be issued for the entire duration of the community event. The bill would revise the definition of community event to explicitly include a district fair. By requiring a local enforcement agency to issue a permit to a temporary food facility to operate at a community event under specified circumstances, this bill would impose a state-mandated local program.

Existing law, the California Retail Food Code, establishes uniform health and sanitation standards for retail food facilities, including temporary food facilities, by the State Department of Public Health. Existing law provides that local health agencies are primarily responsible for enforcing this code. A violation of any provision of the code is generally punishable as a misdemeanor. Existing law limits the service of temporary food facilities that operate at a swap meet to only prepackaged nonpotentially hazardous food and whole, uncut produce, and requires those temporary food facilities and requires temporary food facilities that operate at a community event to meet specified requirements. requirements, and defines community event for these purposes.

This bill would make a technical, nonsubstantive change to those provisions. require a temporary food facility to be granted a permit to operate at a community event if the enforcement agency makes a determination that the temporary food facility meets specified requirements, and would require the permit to be issued for the entire duration of the community event. The bill would revise the definition of community event to include a district fair. By requiring a local enforcement agency to issue a permit to a temporary food facility to operate at a community event under specified circumstances, this bill would impose a state-mandated local program.

Existing law, the California Retail Food Code, establishes uniform health and sanitation standards for retail food facilities, including temporary food facilities, by the State Department of Public Health. Existing law provides that local health agencies are primarily responsible for enforcing this code. A violation of any provision of the code is generally punishable as a misdemeanor. Existing law limits the service of temporary food facilities that operate at a swap meet to only prepackaged nonpotentially hazardous food and whole, uncut produce, and requires those temporary food facilities and temporary food facilities that operate at a community event to meet specified requirements.

This bill would make a technical, nonsubstantive change to those provisions.

GOVERNOR'S VETO

GV Bill Id:AB 724

Author:(Dodd and Frazier)

As Enrolled Ver:August 31, 2016

2/3 vote

(Vote not relevant)

(Rev. & Tax.)

Original Committee Reference: HEALTH

SUMMARY: Establishes a sales and use tax (SUT) exemption for tangible personal property (TPP) purchased by the Jimmy Doolittle Air and Space Museum Education Foundation for display purposes.

The Senate amendments delete the Assembly version of this bill and instead:

1. Expand the existing SUT exemption for TPP purchased by specified nonprofit museums for display purposes to include the Jimmy Doolittle Air and Space Museum Education Foundation.
2. Provide that, notwithstanding existing law, the State shall not reimburse any city or county for any SUT revenues lost as a result of this bill.
3. Contain findings and declarations that a special law is necessary and that a general law cannot be made applicable within the meaning of California Constitution Article IV Section 16 because of the unique fiscal pressures experienced by the Jimmy Doolittle Air and Space Museum Education Foundation in promoting this country's aviation history and encouraging patriotic endeavors by providing impactful experiences through interactive aviation exhibits.
4. Provide that this bill shall take immediate effect as a tax levy.

EXISTING LAW:

1. Imposes a sales tax on retailers for the privilege of selling TPP, absent a specific exemption. The tax is based upon the retailer's gross receipts from TPP sales in this state.
2. Imposes a complimentary use tax on the storage, use, or other consumption of TPP purchased out-of-state and brought into California. The use tax is imposed on the purchaser; and unless the purchaser pays the use tax to an out-of-state retailer registered to collect California's use tax, the purchaser remains liable for the tax. The use tax is set at the same rate as the state's sales tax and must generally be remitted to the State Board of Equalization (BOE).
3. Provides a SUT exemption for TPP purchased by the San Diego Air & Space Museum and the California Science Center if the property is purchased and used exclusively for display purposes within the museum, as provided. (Revenue and Taxation Code (R&TC) Section 6366.4)
4. Provides a SUT exemption for original works of art purchased by specified entities, including the state, to become part of the permanent collection of a museum. (R&TC Section 6365)

AS PASSED BY THE ASSEMBLY, this bill added district fairs as a type of "community event" in the California Retail Food Code.

FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.

COMMENTS:

1. The author has provided the following statement in support of this bill:

AB 724 would provide this volunteer supported nonprofit museum the unique opportunity to purchase the fully restored "Shell Lockheed Vega" piloted by General Jimmy Doolittle himself. A generous private donation will cover 50% of the cost of the Vega, and this exemption would allow the nonprofit museum to more easily fundraise money necessary to purchase the remaining 50%. AB 724 will include the Doolittle Museum with other exempt museums and will aid the nonprofit in accomplishing its educational mission.

1. Revenue and Taxation Committee staff comments:
   1. Background: The original SUT exemption for the San Diego Aero-Space Museum's purchases of display items was enacted in 1986. In 1988, the SUT exemption was extended to purchases made by the California Science Center. In 1992, legislation expanded the exemption to include sprung instant structures purchased by these entities for use as temporary exhibit housing. This bill, in turn, would expand the exemption to include the Jimmy Doolittle Air and Space Museum Education Foundation.

The BOE notes that, based on staff conversations with the Foundation, the museum plans to purchase an aircraft with an estimated value of $1 million. The Foundation has indicated that 50% of the plane's value is being donated, while the Foundation will raise the other 50% to make the purchase. To facilitate this purchase, this bill would exempt from the SUT museum pieces purchased by the Jimmy Doolittle Air and Space Museum Education Foundation.

• 1. Scope of this bill: While this bill is designed to help facilitate the purchase of one historic airplane, the SUT exemption language is not limited to this single purchase. Indeed, the exemption would apply indefinitely to the Foundation's future display purchases, given that the exemption does not contain a sunset provision.

In addition, this bill continues the practice of applying the existing SUT exemption in an ad hoc fashion to specifically named museums. Given the inherently laudable purposes served by historical and scientific museums throughout California, the Legislature may wish to consider whether it would be preferable to provide a broad-based exemption to all nonprofit museums open to the public.

• 1. Substantial amendments: This bill was substantially amended in the Senate and the Assembly-approved provisions of this bill were deleted. This bill, as amended in the Senate is inconsistent with Assembly actions.

GOVERNOR'S VETO MESSAGE:

I am returning the following seven bills without my signature:

Assembly Bill 717

Assembly Bill 724

Assembly Bill 1561

Assembly Bill 2127

Assembly Bill 2728

Senate Bill 898

Senate Bill 907

Each of these bills creates a new tax break or expands an existing tax break. In total, these bills would reduce revenues by about $300 million through 2017-18.

As I said last year, tax breaks are the same as new spending – they both cost the General Fund money. As such, they must be considered during budget deliberations so that all spending proposals are weighed against each other at the same time. This is even more important when the state's budget remains precariously balanced.

Therefore, I cannot sign these measures.

Analysis Prepared by: M. David Ruff / REV. & TAX. / (916) 319-2098 FN: 0005052

CONCURRENCE IN SENATE AMENDMENTS

CSA2 Bill Id:AB 724

Author:(Dodd and Frazier)

As Amended Ver:April 14, 2016

Majority vote. Tax levy

(Vote not relevant)

(Rev. & Tax.)

Original Committee Reference: HEALTH

SUMMARY: Establishes a sales and use tax (SUT) exemption for tangible personal property (TPP) purchased by the Jimmy Doolittle Air and Space Museum Education Foundation for display purposes.

The Senate amendments delete the Assembly version of this bill and instead:

1. Expand the existing SUT exemption for TPP purchased by specified nonprofit museums for display purposes to include the Jimmy Doolittle Air and Space Museum Education Foundation.
2. Provide that, notwithstanding existing law, the State shall not reimburse any city or county for any SUT revenues lost as a result of this bill.
3. Contain findings and declarations that a special law is necessary and that a general law cannot be made applicable within the meaning of California Constitution Article IV Section 16 because of the unique fiscal pressures experienced by the Jimmy Doolittle Air and Space Museum Education Foundation in promoting this country's aviation history and encouraging patriotic endeavors by providing impactful experiences through interactive aviation exhibits.
4. Provide that this bill shall take immediate effect as a tax levy.

EXISTING LAW:

1. Imposes a sales tax on retailers for the privilege of selling TPP, absent a specific exemption. The tax is based upon the retailer's gross receipts from TPP sales in this state.
2. Imposes a complimentary use tax on the storage, use, or other consumption of TPP purchased out-of-state and brought into California. The use tax is imposed on the purchaser; and unless the purchaser pays the use tax to an out-of-state retailer registered to collect California's use tax, the purchaser remains liable for the tax. The use tax is set at the same rate as the state's sales tax and must generally be remitted to the State Board of Equalization (BOE).
3. Provides a SUT exemption for TPP purchased by the San Diego Air & Space Museum and the California Science Center if the property is purchased and used exclusively for display purposes within the museum, as provided. (Revenue and Taxation Code (R&TC) Section 6366.4)
4. Provides a SUT exemption for original works of art purchased by specified entities, including the state, to become part of the permanent collection of a museum. (R&TC Section 6365)

AS PASSED BY THE ASSEMBLY, this bill added district fairs as a type of "community event" in the California Retail Food Code.

FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.

COMMENTS:

1. The author has provided the following statement in support of this bill:

AB 724 would provide this volunteer supported nonprofit museum the unique opportunity to purchase the fully restored "Shell Lockheed Vega" piloted by General Jimmy Doolittle himself. A generous private donation will cover 50% of the cost of the Vega, and this exemption would allow the nonprofit museum to more easily fundraise money necessary to purchase the remaining 50%. AB 724 will include the Doolittle Museum with other exempt museums and will aid the nonprofit in accomplishing its educational mission.

1. Proponents of this bill note the following:

Under existing law, the San Diego Air and Space Museum and the California Science Center's purchases of property used exclusively for display purposes within the museum are exempt from sales and use tax. No other aviation museums are provided the same exemptions.

The Jimmy Doolittle Air and Space Museum Education Foundation has an opportunity to add the fully restored 1932 "Shell Lockheed Vega" flown by General Doolittle to its historic aircraft collection. Fifty percent of the aircraft has been donated. The Foundation would like to purchase the remaining 50% but it will be a challenge to raise sufficient funding to make this purchase. Exempting this purchase from sales and use tax will assist them in acquiring this antique aircraft.

AB 724 will allow an important piece of aviation history to be displayed for Californians and tourists to enjoy.

1. The BOE notes the following in its staff analysis of this bill:
   1. Effect of the bill: "Enables the Jimmy Doolittle Air and Space Museum Education Foundation ("Foundation") to purchase museum pieces for display purposes without payment of sales tax reimbursement or use tax."
   2. Proposed exemption would apply prospectively only: "The bill would take effect immediately upon enactment. Any museum display items the Foundation has purchased or purchases prior to the bill's effective date remain subject to tax. Once enacted, the Foundation's future museum display item purchases (such as the historic aircraft) will receive the exemption's benefit."
   3. This bill does not materially impact the BOE's tax audit or administrative functions: "Since the bill only affects one museum, its enactment would have an insignificant impact to the BOE."
2. Committee staff comments:
   1. Background: The original SUT exemption for the San Diego Aero-Space Museum's purchases of display items was enacted in 1986. In 1988, the SUT exemption was extended to purchases made by the California Science Center. In 1992, legislation expanded the exemption to include sprung instant structures purchased by these entities for use as temporary exhibit housing. This bill, in turn, would expand the exemption to include the Jimmy Doolittle Air and Space Museum Education Foundation.

The BOE notes that, based on staff conversations with the Foundation, the museum plans to purchase an aircraft with an estimated value of $1 million. The Foundation has indicated that 50% of the plane's value is being donated, while the Foundation will raise the other 50% to make the purchase. To facilitate this purchase, this bill would exempt from the SUT museum pieces purchased by the Jimmy Doolittle Air and Space Museum Education Foundation.

• 1. Scope of this bill: While this bill is designed to help facilitate the purchase of one historic airplane, the SUT exemption language is not limited to this single purchase. Indeed, the exemption would apply indefinitely to the Foundation's future display purchases, given that the exemption does not contain a sunset provision.

In addition, this bill continues the practice of applying the existing SUT exemption in an ad hoc fashion to specifically named museums. Given the inherently laudable purposes served by historical and scientific museums throughout California, the Legislature may wish to consider whether it would be preferable to provide a broad-based exemption to all nonprofit museums open to the public.

• 1. Legislative history:
     1. SB 1004 (Knight) of 2001, would have provided a SUT exemption for TPP sold to the Flight Test Historical Foundation for its donation to the Air Force Flight Test Center Museum. SB 1004 was never heard by the Senate Committee on Revenue and Taxation.
     2. AB 2475 (Kuehl) of 2000, would have extended the existing SUT exemption to the Museum of Flying. Governor Davis vetoed AB 2475 noting, "Although I recognize that the revenue losses from this bill are minor, I am vetoing the bill based on my concern about the continued erosion of the sale and use tax base through the expansion of exemptions."
     3. AB 759 (Maddox) of 1999, would have extended the existing SUT exemption to specified purchases of property used in any museum, science center, or marine institute meeting certain conditions. AB 759 died on the Assembly Appropriations Committee's Suspense File.
  2. Substantial amendments: This bill was substantially amended in the Senate and the Assembly-approved provisions of this bill were deleted. This bill, as amended in the Senate is inconsistent with Assembly actions.

Analysis Prepared by: M. David Ruff / REV. & TAX. / (916) 319-2098 FN: 0004856

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 724

Author:(Dodd and Frazier)

As Amended Ver:April 14, 2016

Majority vote

(vote not relevant)

Original Committee Reference: HEALTH

SUMMARY: Establishes a sales and use tax (SUT) exemption for tangible personal property (TPP) purchased by the Jimmy Doolittle Air and Space Museum Education Foundation for display purposes.

The Senate amendments delete the Assembly version of this bill and instead:

1. Expand the existing SUT exemption for TPP purchased by specified nonprofit museums for display purposes to include the Jimmy Doolittle Air and Space Museum Education Foundation.
2. Provide that, notwithstanding existing law, the state shall not reimburse any city or county for any SUT revenues lost as a result of this bill.
3. Contain findings and declarations that a special law is necessary and that a general law cannot be made applicable within the meaning of the California Constitution Article IV, Section 16 because of the unique fiscal pressures experienced by the Jimmy Doolittle Air and Space Museum Education Foundation in promoting this country's aviation history and encouraging patriotic endeavors by providing impactful experiences through interactive aviation exhibits.
4. Provide that this bill shall take immediate effect as a tax levy.

EXISTING LAW:

1. Imposes a sales tax on retailers for the privilege of selling TPP, absent a specific exemption. The tax is based upon the retailer's gross receipts from TPP sales in this state.
2. Imposes a complimentary use tax on the storage, use, or other consumption of TPP purchased out-of-state and brought into California. The use tax is imposed on the purchaser; and unless the purchaser pays the use tax to an out-of-state retailer registered to collect California's use tax, the purchaser remains liable for the tax. The use tax is set at the same rate as the state's sales tax and must generally be remitted to the State Board of Equalization.
3. Provides a SUT exemption for TPP purchased by the San Diego Air & Space Museum and the California Science Center if the property is purchased and used exclusively for display purposes within the museum, as provided.

AS PASSED BY THE ASSEMBLY, this bill added district fairs as a type of "community event" in the California Retail Food Code.

FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.

COMMENTS: This bill was substantially amended in the Senate and the Assembly-approved provisions of the bill were deleted. This bill, as amended in the Senate is inconsistent with Assembly actions.

Analysis Prepared by: M. David Ruff / REV. & TAX. / (916) 319-2098 FN: 0003629

 THIRD READING  

Bill No: AB 724

Author:

:

Vote:

SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 6/15/16

AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Moorlach, Pavley

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 76-0, 5/7/15 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST: This bill provides a sales and use tax exemption for the purchase of museum display items and sprung instant structures purchased by the Jimmy Doolittle Air and Space Museum Education Foundation.

ANALYSIS:

Existing law:

1. Imposes a sales and use tax (SUT) on the sale, storage, or use of tangible personal property unless exempted by state law.
2. State law provides several sales and use tax exemptions related to museums, as follows:
   1. Original works of art when they are, among other things, purchased by a California state or local entity, or by certain nonprofit organizations under contract with governmental entities, by certain nonprofit organizations for public exhibit, or by persons for donation directly to any governmental or nonprofit organization.
   2. Museum pieces purchased to replace destroyed property used exclusively for display purposes when purchased within three years from the date the property was destroyed by (1) the state or a local government entity as part of a public art collection, (2) a nonprofit museum regularly open to the public and operated by a local or state government entity, or (3) operated by certain nonprofit organizations.
   3. Purchases of museum display items and sprung instant structures (structures that serve as temporary buildings to house exhibits) purchased by the San Diego Air and Space Museum’s and the California Science Center’s.

This bill:

1. Provides a SUT exemption for the purchase of museum display items and sprung instant structures purchased by the Jimmy Doolittle Air and Space Museum Education Foundation.
2. Makes legislative findings and declarations as to the necessity of a special statute for the Jimmy Doolittle Air and Space Museum Education Foundation.

Background

In 1986, the sales and use tax exemption for the San Diego Air and Space Museum’s purchase of museum display items was enacted. In 1988, the exemption was extended to the California Science Center. In 1992, the Legislature again expanded the exemption to include sprung instant structures purchased by these entities for use as temporary exhibit housing. Other measures have been considered in the past to further expand this exemption to include purchases by the Museum of Flying, the March Field Museum Foundation, and the Air Force Flight Test Center Museum, but all of them ultimately failed.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 6/28/16)

City of Vacaville

Fiona Ma, Board of Equalization Member

George Runner, Board of Equalization Member

Jimmy Doolittle Air and Space Museum Education Foundation

Solano County – Nut Tree Airport

OPPOSITION: (Verified 6/28/16)

None received

ARGUMENTS IN SUPPORT: According to the author, “AB 724 would provide the Jimmy Doolittle Air and Space Museum Education Foundation the rare opportunity to purchase the fully restored “Shell Lockheed Vega” piloted by General Doolittle himself. This largely volunteer supported nonprofit museum received a generous private donation covering 50% of the cost of purchasing the Vega. Because of limited funding sources, an exemption from paying sales and use tax on this purchase would allow the museum to more easily fundraise the remaining cost of this historic aircraft. Such an exemption is not precedent setting; two similar exemptions have been approved for museums seeking educational displays for public benefit.”

ASSEMBLY FLOOR: 76-0, 5/7/15

AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins

NO VOTE RECORDED: Bloom, Campos, Roger Hernández, Steinorth

Prepared by:

6/29/16 15:45:50

**** END ****

SENATE COMMITTEE ON GOVERNANCE AND FINANCE

Senator Robert M. Hertzberg, Chair

2015 - 2016 Regular

Sales and use taxes: exemption: museum displays: Jimmy Doolittle Air and Space Museum Education Foundation

Provides a sales and use tax exemption for the purchase of museum display items and sprung instant structures purchased by the Jimmy Doolittle Air and Space Museum Education Foundation.

Background

State law imposes a sales and use tax (SUT) on the sale, storage, or use of tangible personal property unless exempted by state law. The current state SUT rate is 7.5%, but beginning January 1, 2017, the state SUT rate on tangible personal property will be 7.25%. Cities and Counties may increase the SUT rate up to 2% as a transactions and use tax for either specific or general purposes with voter approval as required by the California Constitution.

State law provides several sales and use tax exemptions related to museums, as follows:

• Original works of art when they are, among other things, purchased by a California state or local entity, or by certain nonprofit organizations under contract with governmental entities, by certain nonprofit organizations for public exhibit, or by persons for donation directly to any governmental or nonprofit organization.
• Museum pieces purchased to replace destroyed property used exclusively for display purposes when purchased within three years from the date the property was destroyed by (1) the state or a local government entity as part of a public art collection, (2) a nonprofit museum regularly open to the public and operated by a local or state government entity, or (3) operated by certain nonprofit organizations.
• Purchases of museum display items and sprung instant structures (structures that serve as temporary buildings to house exhibits) purchased by the San Diego Air and Space Museum’s and the California Science Center’s.

Proposed Law

Assembly Bill 724 provides a sales and use tax exemption for the purchase of museum display items and sprung instant structures used as temporary exhibit housing purchased by the Jimmy Doolittle Air and Space Museum Education Foundation.

AB 724 makes legislative findings and declarations as to the necessity of a special statute for the Jimmy Doolittle Air and Space Museum Education Foundation.

State Revenue Impact

According to the Board of Equalization (BOE), this bill would result in a one-time state and local revenue loss of $39,000.

Comments

1. Purpose of the bill. According to the author, “AB 724 would provide the Jimmy Doolittle Air and Space Museum Education Foundation the rare opportunity to purchase the fully restored “Shell Lockheed Vega” piloted by General Doolittle himself. This largely volunteer supported nonprofit museum received a generous private donation covering 50% of the cost of purchasing the Vega. Because of limited funding sources, an exemption from paying sales and use tax on this purchase would allow the museum to more easily fundraise the remaining cost of this historic aircraft. Such an exemption is not precedent setting; two similar exemptions have been approved for museums seeking educational displays for public benefit.”

2. History lesson. In 1986, the sales and use tax exemption for the San Diego Air and Space Museum’s purchase of museum display items was enacted. In 1988, the exemption was extended to the California Science Center. In 1992, the Legislature again expanded the exemption to include sprung instant structures purchased by these entities for use as temporary exhibit housing. Other measures have been considered in the past to further expand this exemption to include purchases by the Museum of Flying, the March Field Museum Foundation, and the Air Force Flight Test Center Museum, but all of them ultimately failed.

3. What about me? Currently, only the San Diego Air and Space Museum and the California Science Center are exempted from sales and use tax for purchases of museum display items and sprung instant structures used as temporary exhibit housing. Ensuring that the public is able to learn about various subjects and view displays by visiting museums is a laudable goal and should be a policy priority. However, why should a couple of museums benefit from a sales and use tax exemption, while others do not? The Committee may wish to consider what policy rationale to apply when distinguishing between museums with sales and use tax exemptions from museums subject to sales and use tax.

Assembly Actions

Not relevant to this version of the bill.

Support and Opposition

(6/9/16)

Support: City of Vacaville; Fiona Ma, Board of Equalization Member; George Runner, Board of Equalization Member; Jimmy Doolittle Air and Space Museum Education Foundation; Solano County – Nut Tree Airport.

Opposition: Unknown.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 724

Author:(Dodd)

As Amended Ver:April 20, 2015

Majority vote

SUMMARY: Adds district fairs as a type of "community event" in the California Retail Food Code (CRFC).

FISCAL EFFECT: None

COMMENTS: According to the author, this bill harmonizes the definition of district fairs across the state and in doing so provides for uniform and equitable enforcement of health code. County environmental health divisions are given a large degree of discretion in the CRFC to determine best practices at all categories of food facilities. While this local discretion is critical in ensuring food safety across different regions, it has also resulted in uneven enforcement of regulations across the state. The author states variability between counties has created difficulty for events that operate in more than one county.

BACKGROUND. The CRFC is patterned after the federal Food and Drug Administration (FDA) Food Code, which is a model for local, state, and federal jurisdictions that are responsible for ensuring food safety. According to the FDA, the Food Code represents the FDA's best advice, updated every four years, for a uniform system of provisions that address the safety and protection of food offered at retail and in food service. Forty-eight states and territories have adopted food codes patterned after the FDA Food Code, representing over 80% of the United States population.

District Fairs. District fairs, also known as District Agricultural Associations (DAAs) are within the network of California fairs and expositions. DAAs are largely the same as county fairs, although DAAs have more strict reporting requirements to the California Department of Food and Agriculture because they are a state entity, while county fairs are operated through a contract with the County Board of Supervisors or other local government. Among the 78 California fairs there are 52 DAAs, 23 county fairs, two Citrus Fruit Fairs, and the California Exposition and State Fair.

Analysis Prepared by: Dharia McGrew / HEALTH / (916) 319-2097 FN: 0000222

Date of Hearing: April 28, 2015

ASSEMBLY COMMITTEE ON HEALTH

Rob Bonta, Chair

ABPCA Bill Id:AB 724

Author:Dodd – As Amended Ver:April 20, 2015

SUBJECT: Temporary food facilities: community event.

SUMMARY: Adds district fairs as a type of "community event" in the California Retail Food Code (CRFC).

EXISTING LAW:

1. Establishes the CRFC, which states the intent of the Legislature to occupy the whole field of health and sanitation standards for retail food facilities and makes standards set forth in CRFC exclusive of all local health and sanitation standards relating to retail food facilities, with specified exceptions. Vests local enforcement agencies with primary responsibility for enforcement of CRFC.
   
   

2. Defines a food facility as an operation that stores, prepares, packages, serves, vends, or otherwise provides food for human consumption, on or off the premises, regardless of whether there is a charge, at the retail level. Creates standards particular to specific types of food facilities which include: Permanent food facilities; Mobile food facilities; Nonprofit charitable temporary food that are operated four times a year by a nonprofit charitable organization; Temporary food facilities that are assembled and remain fixed during a community event or swap meet; Certified farmers’ markets certified by the County Agricultural Commissioner; and, Farm stands.

3. Defines a temporary food facility as a food facility approved by the enforcement officer that operates at a fixed location for the duration of an approved community event or at a swap meet and only as a part of the community event or swap meet.

4. Defines community event as an event that is of civic, political, public, or educational nature, including state and county fairs, city festivals, circuses, and other public gathering events approved by the local enforcement agency.

5. Assigns regulatory authority and responsibility for fiscal and policy oversight of fairs to the California Department of Food and Agriculture (DFA)

FISCAL EFFECT: None.

COMMENTS:

1. PURPOSE OF THIS BILL. According to the author, this bill harmonizes the definition of district fairs across the state and in doing so provides for uniform and equitable enforcement of health code. County environmental health divisions are given a large degree of discretion in the CRFC to determine best practices at all categories of food facilities. While this local discretion is critical in ensuring food safety across different regions, it has also resulted in uneven enforcement of regulations across the state. The author asserts that local control of food safety requirements presents a particular challenge for events with traveling components such as fairs and golf tournaments. In extreme cases the result is such that food practices which guarantee approval to operate in one county may fail to pass in another county, or only secure operational approved for a very limited time, typically three to five days. The author states that issues have arisen when a community event is scheduled for a longer period of time than its food facilities are granted approval to operate.

2. BACKGROUND. The CRFC is patterned after the federal Food and Drug Administration (FDA) Food Code, which is a model for local, state, and federal jurisdictions that are responsible for ensuring food safety. According to the FDA, the Food Code represents FDA's best advice, updated every four years, for a uniform system of provisions that address the safety and protection of food offered at retail and in food service. Forty-eight states and territories have adopted food codes patterned after the FDA Food Code, representing over 80% of the U.S. population.

3. DISTRICT FAIRS. District fairs, also known as District Agricultural Associations (DAAs) are within the network of California fairs and expositions. DAAs are largely the same as County Fairs, although DAAs have more strict reporting requirements to DFA because they are a state entity, while county fairs are operated through a contract with the County Board of Supervisors or other local government. Among the 78 California fairs there are 52 DAAs, 23 County Fairs, two Citrus Fruit Fairs, and the California Exposition and State Fair.

4. RELATED LEGISLATION.
   
   
   

   1. AB 143 (Wood) expands an exemption in the CRFC allowing wine tasting rooms that currently only serve crackers to also serve pretzels or prepackaged non-potentially hazardous foods. AB 143 passed out of this committee on April 21, 2015 with a vote of 16-0 and is now pending in Assembly Appropriations Committee.
      
      
      

   2. AB 1076 (Mayes) exempts from the definition of a food facility, a snack bar operated by a charitable nonprofit organization and authorizes snack bars to undertake limited food preparation, as defined. AB 1076 is pending in Assembly Health Committee.

4. POLICY COMMENT. Under DFA regulation, district fairs and county fairs are treated largely the same. It is not clear that there is a need to differentiate district and county fairs within the CRFC.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file.

Opposition

None on file.

Analysis Prepared by: Dharia McGrew / HEALTH / (916) 319-2097