Relates to the state fair advisory board, repeals title 3 of article 8 of the public authorities law

Section 2 of this bill provides that upon enactment of the bill all assets and liabilities of the IEA, and all accounts, money, obligations, contracts, agreements, causes of action and any other thing of value held by the IEA, shall be deemed property of the State and be under the Department's management.

Section 3 of this bill provides that upon enactment of the bill the records of the IEA shall be transferred to the Department.

Section 4 of this bill provides that upon enactment of the bill the Department shall be authorized to conduct and complete any unfinished business of the IEA.

Section 5 of this bill provides that upon enactment of the bill the Department and/or the Commissioner of Agriculture and Markets (Commissioner), as appropriate, shall be deemed to constitute the continuation of the IEA for the purpose of the Department's succession to the functions, powers, duties and obligations transferred and assigned to it under this bill.

Section 6 of this bill provides that whenever the IEA is referred to or designated in contracts or documents, the Department or the Commissioner, as appropriate, shall be deemed substituted for the IEA.

Section 7 of this bill provides that the State may continue the employment of such IEA employees as deemed necessary, and that the provisions of Civil Service Law § 45 shall apply to such acquisition.

Section 8 of this bill provides that no existing right or remedy of any character shall be lost, impaired or affected because of this bill.

Section 9 of this bill provides that no action pending at the time the bill takes effect brought by or against the IEA shall be affected by this bill, and that such action may be prosecuted or defended in the name of the Commissioner or the Department, as appropriate, and the

proper party shall, upon application to the relevant court, be substituted.

Section 10 of this bill provides that all rules, regulations, acts, determinations and decisions of the IEA pertaining to the functions transferred and assigned to the Department under this bill which are in force on the effective date of the bill shall continue in force and effect as rules, regulations, acts, determinations and decisions of the Commissioner until duly modified or abrogated by the Commissioner.

Section 11 of this bill provides that: (1) unexpended or unencumbered appropriations and reappropriations made to the IEA for the functions, powers and other matters transferred to the Department pursuant to this bill shall be transferred to and made available for use and expenditure by the Department and be payable on vouchers certified or approved by the Commissioner on audit and warrant of the Comptroller; and (2) payments of liabilities for expenses of personal services, maintenance and operation which have been incurred by the IEA as of the effective date of this bill in connection with the functions, powers and other matters transferred pursuant to this bill, shall be made on vouchers certified or approved by the Commissioner on audit and warrant of the comptroller.

Section 12 of this bill repeals Title 3 of Article 8 of the Public Authorities Law (PAL).

Section 13 of this bill provides that this bill would become effective on the ninetieth day after it becomes a law.

Existing law

PAL §§1650-1665 establishes and provides for the operation of the IEA.

AML § 16(28) establishes a State Fair Advisory Board which shall consist of up to 15 members appointed by the Commissioner.

Legislative history

This is a new proposal.

Statement in support

The IEA was created in 1933 to qualify for federal capital construction funds which were to be used to improve the New York State Fairgrounds in Syracuse, NY. The IEA's enabling legislation transferred part of the Fairgrounds then owned by the State and under the Commissioner's jurisdiction to the IEA. The enabling legislation also required the IEA to cooperate with the Commissioner in presenting the annual State Fair and authorized the Commissioner and the IEA to enter into agreements providing, in part, for payment to the IEA from the Commissioner of money for the use of IEA facilities. Those facilities now include five of the structures on the Fairgrounds.

The original purpose for the creation of the IEA no longer exists, and the IEA's continued existence results in unnecessary duplication of effort, expenditure of resources and unwarranted division of authority between the IEA and the Department over operation of the Fairgrounds.

Presently, the IEA and the Department's Division of the State Fair (Division) maintain separate records concerning use and operation of their respective facilities on the Fairgrounds, yet those facilities are used for the same purpose - presentation of the annual State Fair and operation of the Fairgrounds. The IEA and Division also maintain separate financial and human resource operations.

The legal distinction between the IEA and the Division has necessitated the purchase of liability insurance by the IEA, costing $75,000-$125,000 per year. In addition, the annual audit of the IEA by a certified auditor costs $35,000-$75,000.

The elimination of the IEA and the transfer of its property and responsibilities to the Department will make operation of the Fairgrounds more efficient by, for example, eliminating duplicative personnel and fiscal functions and consolidating them within the Department's existing Human Resources and Fiscal Management divisions. Also, accountability for Fairgrounds operations would rest solely with the Department.

The reconstitution of the Board will reduce Board membership from a maximum of 15 private members appointed by the Commissioner, to eleven members appointed by the Governor, including four upon the recommendation of legislative leaders. The new Board should provide new and enhanced direction to the State Fair.

Budget implications

This bill would save $100,000-$150,000 annually in insurance and audit costs to the IEA and result in significant savings through the elimination of duplicate efforts, especially human and fiscal management resources. Further, since the IEA receives its funding, in part, from a portion of the State Fair gate receipts, that funding, as well as other revenue derived from the buildings currently owned by the IEA, would be available to the Department upon enactment of the bill.

Effective date

This bill would become effective on the ninetieth day after it becomes a law.