April 23, 1984
Senator Leland Kleinsasser
Legislative Research Council
State Capitol
Pierre, South Dakota 57501
OFFICIAL OPINION NO. 84-17
The contracting authority of the state fair commission
Dear Senator Kleinsasser:
You have requested an official opinion from this office in regard to the following factual situation:
FACTS:
The state fair commission annually leases a portion of the State fairgrounds for special summer racing through the competitive bidding process.
Based upon the above facts, you have asked the following questions:
QUESTION:
1. Does the state fair commission have the authority to lease state land to private individuals?
2. What supervisory controls does the department of agriculture possess over decisions made by the state fair commission?
3. What procedures and criteria must the state fair commission use in letting a bid for special summer racing?
IN RE QUESTION NO. 1:
The answer to Question No. 1 is YES. The state fair commission has the power to supervise and control the State fairgrounds (SDCL 1-21-6) and also has the power to enter into contracts. SDCL 1-21-7. Although those statutes do not expressly give the state fair commission the power to lease state fair property to private individuals, they by implication grant such a power. To give the commission 'control of the state fair grounds' certainly contemplates the commission having the power to lease those grounds.
IN RE QUESTION NO. 2:
The answer to this question is found in SDCL 1-21-1.1 which provides:
The state fair commission shall be administered under the direction and supervision of the department of agriculture and the secretary thereof, but shall retain the quasi-judicial, quasi-legislative, advisory, other nonadministrative and special budgetary functions (as defined in § 1-32-1) otherwise vested in it and shall exercise those functions independently of the secretary of agriculture.
Therefore, unless the function performed by the state fair commission comes within the definitions of 'quasi-judicial, quasi-legislative, advisory, other nonadministrative and special budgetary functions,' that function is under the direction and supervision of the department of agriculture. See SDCL 1-32-1 for definitions of functions. The above quoted statute and the department of agriculture and state fair commission regulations are silent as to the specifics of the department of agriculture's supervisory control of the commission. See Title 12 of the Administrative Rules of South Dakota and ARSD 12:03. Consequently, the department of agriculture may have the discretionary ability to control completely those functions of the state fair commission which are not independently vested in the commission by SDCL 1-21-1.1.
The selection of a lessee by the commission for summer racing at the fair- grounds seems to come within the definition of a 'quasi-judicial function.' See SDCL 1-32-1(1). That selection, therefore, may be made by the commission independently from the department of agriculture.
IN RE QUESTION NO. 3:
The key bidding statute is found at SDCL 5-18-2 which reads in part as follows:
All contracts of any public corporation, whether for the construction of public improvements or contracts for the purchase, lease or rental of materials, supplies or equipment, when such contracts involve an expenditure equal to or in excess of the amount provided for in § 5-18-3, must be let to the lowest responsible bidder. . . .
The state fair commission is a 'public corporation.' See SDCL 5‑18-1(1). The bidding requirement referred to in SDCL 5-18-2 is, however, imposed only on public corporations which are lessees not lessors. In the factual situation you presented, the state fair commission is the one leasing the property to another. As such, it need not comply with the bidding statutes. Therefore, the answer to your question is that the state fair commission need not comply with any special procedures in letting a bid for the special summer racing program.
Respectfully submitted,
Mark V. Meierhenry
Attorney General
