(a) Notwithstanding any other law, at the direction of the Secretary of Food and Agriculture with the concurrence of the Director of Finance, all revenues that are deposited into the Fair and Exposition Fund pursuant to Section 3203 may first be deposited into a separate account in the fund to be known as the California Fairs Trust Account and, notwithstanding Section 13340 of the Government Code, are continuously appropriated from that account to the Department of Food and Agriculture, for allocation by the secretary, at the secretary’s discretion, for the purposes set forth in paragraphs (1) to (4), inclusive. The concurrence of the Director of Finance shall be required for allocations pursuant to paragraph (1). Allocations pursuant to paragraphs (2) to (4), inclusive, shall be made with the concurrence of the Joint Committee on Fairs Allocation and Classification.

1. (1) For the repayment of the principal of, interest on, and costs of issuance of, and as security, including any coverage factor, pledged to the payment of, bonds issued or to be issued by a joint powers agency or other debt service or expense, including repayment of any advances made or security required by any provider of credit enhancement or liquidity for those bonds or other indebtedness or expenses of maintaining that credit enhancement or liquidity, incurred for the purpose of constructing or acquiring capital improvements at fairgrounds, maintaining facilities at fairs, health, fire and life safety, and emergency services projects, or handicapped access compliance projects at fairgrounds or for the purpose of refunding bonds or other indebtedness incurred for those purposes. As used in this paragraph, “coverage factor” means revenues in excess of the amount necessary to pay debt service on the bonds or other indebtedness, up to an amount equal to 100 percent more than the amount of that debt service, which a joint powers agency, pursuant to the resolution or indenture under which the bonds or other indebtedness are or will be issued, pledges as additional security for the payment of that debt service or is required to have or maintain as a condition to the issuance of additional bonds or other indebtedness. Notwithstanding any other law, the department may also commit any other funds available for allocation pursuant to this chapter to complete projects funded under this paragraph in the priority described in this paragraph.
2. (2) For health, fire and life safety, and emergency services improvement projects at fairs, California Code of Regulations compliance projects, and maintenance projects at fairgrounds that are necessary for public safety and security.
3. (3) For capital improvement projects at fairgrounds. When making determinations to fund capital improvements pursuant to this paragraph, the secretary may grant priority status to renewable energy generation projects or to projects that meet or exceed the standards of the California Environmental Protection Agency.
4. (4) For the payment of expenses incurred in developing and operating revenue generating projects at fairs, or that directly benefit fairs, including the payment of expenses incurred in establishing and operating horse racing and future gaming-related facilities, the establishment of pilot projects to restructure the current fair system, and for projects realizing a cost savings for more efficient use of existing fair resources.

(d) Approval of the Joint Committee on Fairs Allocation and Classification shall be deemed complete when one of the following conditions is met:

1. (1) The annual Budget Act is enacted.
2. (2) If the secretary’s recommendations are received by the Joint Committee on Fairs Allocation and Classification after the enactment of the annual Budget Act, the recommendations shall be deemed approved 30 days after they are received unless they are rejected by the committee.