Fairs: allocation of revenues: gross receipts for sales and use tax.

Assembly Member Connolly's fair revenue legislation proposes increasing the allocation of sales tax receipts from fairground transactions to the Fair and Exposition Fund from 0.75% to 2%. The measure would direct the California Department of Tax and Fee Administration to continue segregating gross receipts from sales occurring on fair properties and report the totals annually to the Department of Finance by November 1.

The bill establishes new working condition requirements that fairs must meet to receive allocated funds. These include providing nonmanagement employees with 30-minute meal periods for shifts over five hours, overtime pay of 1.5 times regular wages for work beyond 8 hours per day or 40 hours per week, and double-time compensation for shifts exceeding 12 hours. Full-time carnival ride operators and employees covered by qualifying collective bargaining agreements are exempt from these provisions.

Under the measure, the Controller would transfer the allocated funds to the Fair and Exposition Fund within 30 days of the annual Budget Act's enactment. The Department of Tax and Fee Administration would recover its administrative costs from the allocated funds before distributions to qualifying fairs occur through the Department of Food and Agriculture.