The California Senate Revenue and Taxation Committee convened on June 25, 2025, to discuss Assembly Bill 258, which aims to increase funding for the California fairs network. The bill proposes that the governor's annual budget allocate 2% of the gross receipts from taxable sales made on fairgrounds to support these events.

Historically, California fairs have depended on horse racing fees for funding. However, in 2009, the legislature eliminated these fees and provided a continuous appropriation of $32 million from the general fund to support fairs. This funding was removed in the 2011-2012 budget, leading to the passage of AB 1499 in 2017, which mandated that 0.75% of gross receipts from fairgrounds be included in the state budget. Unfortunately, this year’s budget only allocated $4.7 million, which is insufficient to meet the growing needs of the fairs, especially as they have increasingly been called upon to serve their communities during emergencies.

Over the past decade, California fairgrounds have been utilized over 300 times for emergency responses, including serving as medical sites during COVID-19 and staging areas for wildfire evacuations. On average, 28 fairs are activated each year for such situations. The proposed changes in AB 258 are seen as essential to restore funding closer to the previously guaranteed $32 million, allowing fairgrounds to continue their critical role in community support and emergency response.

Support for the bill was voiced by various stakeholders, including representatives from the Western Fairs Association and the California Affairs Alliance. They highlighted a significant backlog of $250 million in deferred maintenance and safety issues at fairgrounds, emphasizing the need for increased funding to address these challenges.

During the meeting, committee members expressed their support for the bill and raised concerns about the lack of reimbursement for fairgrounds when they provide emergency services. It was noted that while some compensation may come from FEMA, it often falls short of what is needed to adequately support these efforts.

The committee's discussions underscored the importance of fairgrounds in California's emergency response framework and the necessity of stable funding to ensure they can continue to serve their communities effectively. The next steps will involve further deliberation on the bill and its potential impact on the state's fairs network.