Cal. FAC § 4109 — California Code / Code fac / Division 3 / Part 3 / Chapter 6 / Article 1 / Section 4109
Section 4109
Status: in_force

(a) For purposes of this section, the following terms apply:

(1) “Foundation” means the Exposition Park Foundation.

(2) “Office” means the office of the Exposition Park Manager, as described in Section 4108.

(b) Notwithstanding any other law, the office may, with the approval of the Secretary of the Natural Resources Agency, work to establish a nongovernmental trust, known as the Exposition Park Foundation.

(c) The purpose of the foundation shall be all of the following:

(1) To seek funds for Exposition Park to expand its public programming and infrastructure developments and improvements.

(2) To jointly manage public events that promote the mission of Exposition Park.

(3) To lease portions of state property consistent with the state processes and approvals, and to develop, construct, equip, furnish, and fund the Exposition Park Master Plan or other initiatives of Exposition Park on those properties consistent with lease terms.

(d) For purposes of subdivision (c), in connection with the development described in subdivision (c) of Section 4108, the foundation may, in its determination, select the most qualified construction manager or general contractor to oversee and manage the work and prepare the competitive bid packages for all major subcontractors to be engaged in the implementation and development of the Exposition Park Master Plan. Any construction manager or general contractor selected shall be required to have a California general contractor’s license.

(e) The foundation shall be subject to the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code). To the extent of any conflict between this section and the Nonprofit Public Benefit Corporation Law, this section shall prevail.

(f) For purposes of developing the foundation, the office may use state funds, upon appropriation by the Legislature, to contract with any private or nonprofit law firm to help establish the foundation and provide it with general counsel for not more than one year from the date of its inception. The office shall in no way be legally responsible for any action or decision made by the foundation.

(g) Notwithstanding any other law, the office may develop and enter into no-bid personal services contracts, joint management agreements, lease agreements, and other contracts or grants, as appropriations and funding permits, with the foundation subject to approval by the Natural Resources Agency and the Department of General Services and subject to all state audit requirements.

(h) Notwithstanding any other law, the office may enter into agreements to secure donations, memberships, and corporate and individual sponsorships, and may enter into marketing and licensing agreements for the receipt of money, or services or products in lieu of money, and may enter into an agreement with the foundation or others to develop, solicit, sell, and service these agreements. Any fees charged, or revenues shared with the foundation or other contractors, pursuant to these agreements shall be subject to approval by the Natural Resources Agency and the Department of General Services and subject to all state audit requirements. The office shall limit the foundation to reasonable administration fees, which fees shall cover both direct, indirect, and overhead expenses of the foundation. All revenue generated and received by the foundation pursuant to this section shall be used for the benefit of Exposition Park, except for those reasonable administration costs incurred by the foundation in managing those funds.

(i) Notwithstanding any other law, the office may authorize the foundation to represent it for the purpose of receiving donations on its behalf both onsite, and through the use of copyrighted marketing material. If the office provides authorization for the foundation to represent it, as described in this section, the office may require the foundation to report quarterly on revenues received and expended. All revenues generated and received by the foundation shall be used for the benefit of Exposition Park and associated programming efforts, except those reasonable administration costs incurred by the foundation in managing those funds, which administration costs shall be determined by mutual donation agreement before the acceptance of any donations or use of any marks owned by the office. The mutual donation agreement shall be subject to approval by the Natural Resources Agency and the Department of General Services and subject to all state audit requirements.

(j) Consistent with any mutual donation agreement authorized in subdivision (i), the office may further authorize the foundation to use Exposition Park for special events. The foundation shall either charge a fee for the special events or accept minimum donations in lieu of fees, which moneys shall be subject to the mutual donation agreement. All fees and donations received by the foundation for special events shall be itemized and accounted for to the office regularly. For all foundation managed special events, the foundation shall obtain necessary insurance, and comply with all appropriate public safety and janitorial services, and shall provide its own staff or contractors to develop and manage the special event. All special events shall be preapproved by the Exposition Park Manager, in consultation with the Natural Resources Agency.

(k) The Exposition Park Manager, on behalf of the office, shall annually report on the status of all foundation activities to the Department of Finance regarding the various agreements and revenues identified in this section. The Department of Finance may, upon reasonable notice, examine the books and records of the foundation, and all parties in contract with the office.

(l) The Legislature finds and declares that the operation of Exposition Park may require individual skills not generally available in state civil service to support specialized functions, such as special event development and programming, and educational and guest services programs.

(m) Notwithstanding any other law, Exposition Park may enter into a personal services contract or contracts with the foundation without a competitive bidding process. These contracts shall be subject to approval by the Natural Resources Agency and the Department of General Services and be subject to all state audit requirements.

(n) The office may enter into concession contracts to license or sell, or both, its branded merchandise, images, and other park-related merchandise directly to the public for revenue generation. Concession contracts, other than those contracts entered into pursuant to subdivisions (d), (f), (g), (h), (i), and (j) shall be issued through competitive requests for proposals, and shall seek the best value for the state through a mixture of rental rates or revenue shares, or both. A concession contract executed pursuant to this section shall not exceed five years in length, with one automatic right to renew at new terms, which shall be mutually agreeable to the office and the concessionaire, including any necessary adjustments in rental rates or revenue shares. The office shall require a provision that allows termination at any time with 180 days prior notice.

(o) The office may license or sell, or both, its branded merchandise, images, and other park-related merchandise directly to the public in its discretion.

(p) In addition to onsite concessions, the office may enter into merchandise agreements with individuals, public agencies, qualified nonprofit organizations, and other private entities for sale of park-branded merchandise, images, or other park-related merchandise to the public. The office shall receive fair and reasonable revenues and commissions from any merchandise agreement. These merchandise agreements shall be approved by the Natural Resources Agency and the Department of General Services and subject to all state audit requirements.

(q) All rents, revenues, and commissions received by Exposition Park pursuant to subdivisions (n), (o), and (p) shall be paid into a designated special fund within the Exposition Park Improvement Fund, established pursuant to Section 4106.

(r) On or before January 10, 2024, and annually thereafter, the Department of Finance, in coordination with the office, shall submit a report to the chairpersons of the committees in each house of the Legislature that consider appropriations, the chairpersons of the committees and appropriate subcommittees that consider the State Budget, the Chairperson of the Joint Legislative Budget Committee, and the Legislative Analyst’s Office. The report shall include, but not be limited to, all of the following:

(1) An update on the foundation’s activities undertaken pursuant to the authorities granted in this section.

(2) Details on all joint management agreements, lease agreements, and any contracts executed between the State of California and the foundation.

(3) Revenues and expenditures associated with foundation activities at Exposition Park.

(4) A summary of agreements entered into pursuant to subdivisions (n), (o), and (p) that is expected to involve a total investment or estimated annual gross sales in excess of one million dollars ($1,000,000).

(s) This section shall become inoperative on July 1, 2030, and, as of January 1, 2031, is repealed.