Sen. Padilla’s SB 1223 moves forward to Appropriations after committee cites rigged fair contracts

The Senate Committee on Agriculture advanced SB 1223 on a 4–0 vote, sending the measure to the Appropriations Committee after witnesses told the panel that some fair contracts have been tailored to favor a single bidder.

Sen. Padilla, the bill's sponsor, told the committee SB 1223 "would require state and county fairs to use competitive bidding standards in the awarding of contracts and prohibit sole source contracting." He cited a Los Angeles Times investigation and said the reporting "found widespread corruption in California's fairs" and that "over $1,000,000 in public funds were stolen," prompting the proposed change.

John Moot, senior counsel at Freeman, Mathis and Gary and counsel in related litigation, said there are 54 district agricultural associations that hold fairs and expos that may not be subject to the California Public Contract Code. Moot described two lawsuits involving fair midway operators, saying in one trial the court found fair officials had altered scores to favor a preferred bidder and that an injunction and settlement led to a $500,000 payment and the operator's reinstatement.

"They wrote the RFPs so that only one company in the whole United States could meet the minimum experience and qualifications," Moot said, describing how requests for proposals were tailored. He told the committee that in another case the trial court ruled the food and agricultural code did not make the public contract code applicable, allowing an $80,000,000 contract to proceed without competitive bids.

Moot said the appellate court's published opinion invited the Legislature to clarify the statutes; he noted the California Supreme Court declined review but ordered that opinion depublished. "If the Legislature did not intend a different result, we invite them to revisit and clarify the language," Moot said, summarizing the appellate court's note.

The committee heard no opposition testimony. After brief discussion and a motion to move the bill, the clerk recorded votes: Sen. Caballero, Sen. Alvarado Gill, Sen. McNearney and Sen. Padilla voted "aye"; one member was absent. The chair said the bill would be placed on call for the absent member and the committee recessed briefly before confirming a final tally of 4'to'0.

SB 1223 now goes to the Senate Appropriations Committee for further consideration.