Assembly Member Connolly's proposal to restructure fair funding in California centers on increasing the allocation of sales and use tax revenues from fair operations, raising the current rate from 0.75% to 5% of gross receipts. The measure establishes this enhanced funding stream while implementing new labor standards for fair employees.

The legislation creates a framework linking funding eligibility to specific workplace protections for non-management fair employees. These standards include mandatory 30-minute meal periods for shifts exceeding five hours, overtime pay requirements, and double-time compensation for workdays beyond 12 hours. The provisions exempt full-time carnival ride operators at traveling carnivals and employees covered by qualifying collective bargaining agreements that address wages, hours, working conditions and include binding arbitration for meal period disputes.

Under the bill's reporting structure, the California Department of Tax and Fee Administration must segregate fair-related gross receipts on tax returns and report the annual totals to the Department of Finance by November 1. Following review for accuracy, the designated percentage would be included in the Governor's Budget for Department of Food and Agriculture allocation to fairs. The Controller would then transfer these funds to the continuously appropriated Fair and Exposition Fund within 30 days of budget enactment, with administrative costs deducted before distribution.