CA Codes (fac:4051-4058)


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.  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 which is situated on property that is owned by the
association, in trust or otherwise, or of any outstanding rights to
such property, with the approval of the department and the
association, such 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.
   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 which are specified in
Section 4051 of this chapter.
   Notwithstanding any provision of Sections 14256 and 14792, or of
Article 5 (commencing with Section 25450) of Chapter 5 of Division 2
of Title 3, of the Government 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
such 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.