A Day at the Fair?

Much of my work in the public records and sunshine arena is in representing private organizations, generally not for profits, whose activities may give rise to questions regarding their status under the public records law or even the sunshine law. A "fair association" is a not for profit corporation authorized by Fla. Stat. sec. 616.001 to operate one of the seven (who knew?) types of statutorily defined fairs (community fairs, county fairs, district fairs, regional fairs, interstate fairs, specialized shows and state fairs).

There are at least fifty such fair associations chartered under Chapter 616, the most prominent being the Florida State Fair and our local favorite, the Florida Strawberry Festival. Many of the fair associations control large tracts of real estate (ever increasingly valuable real estate) and generate seven-figure revenues over the course of a year. Their stated statutory purpose, according to subsection (10) of the above-referenced statute, is "the benefit and development of the educational, agricultural, horticultural, livestock, charitable, historical, civic, cultural, scientific, and other resources of the state, any county or counties of the state, or any municipality or other community of any county of the state."

In connection with a series of claims that never quite developed, I had occasion to investigate the nature of these fair associations and any potential exposure under the public records and sunshine laws. The starting point for any analysis of the public records issue would be the venerable Schwab or "totality of factors" test, the elements of which are well known to folks in this area of practice.

Needless to say, I was fascinated by sec. 616.07(1), which provides that: "No member, officer, director, or trustee of a fair association shall be personally liable for any of the debts of the association; and no money or property of a fair association shall be distributed as profits or dividends among its members, officers, directors, or trustees, but all money and property of the association shall, except for the payments of its just debts and liabilities, be and remain perpetually public property, administered by the association as trustee, to be used exclusively for the legitimate purpose of the association, and shall be, so long as so used, exempt from all forms of taxation, including special assessments."

The provisions for no private gain, no personal liability and tax exempt status are pretty standard fare, but to my knowledge the express declaration highlighted above is unique in Florida law. Read the operative portion again: "all money and property of the association shall . . . be and remain perpetually public property, administered by the association as trustee." Now that would make for an interesting Schwab analysis.

More thoughts on fair associations later.