Be it enacted by the Legislature of the State of Arizona:

Section 1. Heading change

The chapter heading of title 3, chapter 8, Arizona Revised Statutes, is changed from "ARIZONA COLISEUM AND EXPOSITION CENTER" to "ARIZONA EXPOSITION AND STATE FAIR BOARD".

Sec. 2. Section 3-1001, Arizona Revised Statutes, is amended to read:

START_STATUTE3-1001. Arizona exposition and state fair board; members; appointment; terms; vacancy; removal; oath; meetings; report

A. There shall be an Arizona exposition and state fair board consisting of five members appointed by the governor. Each member shall serve for a term of five years. No more than three of such members shall be of the same political party. No more than two of such members shall be from any one county. One of the members shall be knowledgeable and have not less than five years' experience in accounting, one member shall be knowledgeable and have not less than five years' experience in finance or business management and another member shall be knowledgeable and have not less than five years' experience in agriculture and another member shall be knowledgeable and have not less than five years' experience in the field of promotions or public relations. Appointment to fill a vacancy resulting otherwise than from expiration of term shall be for the unexpired term. A vacancy shall result when a member is absent from two consecutive regular meetings, except in the event of sickness of the member. A An Arizona exposition and state fair board member may be removed by the governor for cause.

B. Each member of the Arizona exposition and state fair board shall take the oath of office.

C. The Arizona exposition and state fair board shall hold no less than four regular meetings each year and special meetings as designated by the chairman. In May of each year the Arizona exposition and state fair board shall elect a chairman and vice‑chairman. The executive director shall designate an employee of the Arizona exposition and state fair board to act as its recording secretary.

D. Within three weeks after the end of each calendar month, the Arizona exposition and state fair board shall prepare a report signed by the chairman, which shall be transmitted to the governor and the joint legislative budget committee. The report shall contain full financial data for the preceding month, including funds monies received and disbursed, assets and liabilities, profit and loss, and a full and detailed account of its the Arizona exposition and state fair board's transactions. In addition, the report shall include a copy of the minutes of all regular and special meetings. END_STATUTE

Sec. 3. Section 3-1002, Arizona Revised Statutes, is amended to read:

START_STATUTE3-1002. Compensation of members; personal interest in contracts prohibited; violation; classification

A. Board Members of the Arizona exposition and state fair board shall not receive compensation for their services.

B. No board A member or employee shall of the Arizona exposition and state fair board may not, either directly or indirectly, have any financial interest in a contract made by the Arizona exposition and state fair board.

C. A person violating any provisions of who violates this section is guilty of a class 1 misdemeanor. END_STATUTE

Sec. 4. Section 3-1003, Arizona Revised Statutes, is amended to read:

START_STATUTE3-1003. Arizona exposition and state fair board; powers and duties; compensation of employees

A. The Arizona exposition and state fair board shall:

1. Have exclusive custody and direction of all state fair and exposition center property, construct and maintain necessary improvements in connection therewith, with that property and assist in raising funds therefor for that property.

2. Direct and conduct state fairs, exhibits, contests and entertainments for the purposes of promoting and advancing the pursuits and interests of the several counties and of the state, and of producing sufficient revenue to defray the expenses incurred by the Arizona exposition and state fair board in conducting such the events.

3. Charge entrance fees and gate money, and temporarily lease stalls, stands, booths and sites for the purpose of defraying the expenses incurred.

4. Give prizes or premiums for exhibits and contests which that are presented or sponsored by the Arizona exposition and state fair board in connection with the annual state fair.

5. Subject to title 41, chapter 4, article 4, employ an executive director, coliseum manager and comptroller.

6. Delegate to the executive director any of the administrative functions, powers or duties that the Arizona exposition and state fair board believes the executive director can competently, efficiently and properly perform.

7. When necessary in connection with business of the Arizona exposition and state fair board, appoint fair or ground marshals with the authority of peace officers.

8. Have the power to promote, co‑promote or lease the state fairgrounds for such events, exhibitions, entertainments or other purposes it the Arizona exposition and state fair board deems proper.

9. Have power to accept donations of money or other property from any source, and expend them in accordance with directions of the donor. Monies received pursuant to this paragraph shall not be placed in the state general fund.

10. Adopt rules necessary to carry out the provisions of this chapter.

11. Prohibit the issuance of a free pass, ticket or box to any person for any activity at the Arizona coliseum and exposition center, except that this paragraph shall not apply to the state fair and any lessees of the Arizona coliseum and exposition center.

B. The Arizona exposition and state fair board may exempt from subsection A, paragraphs 2 and 3 such of this section any educational, agricultural and mineral exhibits as that, in its the opinion of the Arizona exposition and state fair board, are in the best interest of the state and not contrary to any outstanding obligations the Arizona exposition and state fair board might have incurred.

C. Compensation of all employees shall be as determined pursuant to section 38‑611. END_STATUTE

Sec. 5. Section 3-1003.01, Arizona Revised Statutes, is amended to read:

START_STATUTE3-1003.01. Qualifications of executive director and comptroller

A. The executive director shall be qualified by having at least five years' experience in, and a working knowledge of, coliseum or similar auditorium type operational management, including fair, agricultural and livestock exposition experience.

B. The coliseum manager shall be qualified by having at least four years' experience as manager or assistant manager of a coliseum or similar auditorium type of operation.

C. B. The comptroller shall be qualified preferably as a certified public accountant with at least five years' experience in general accounting, including cost accounting and budgetary proceedings. END_STATUTE

Sec. 6. Section 3-1003.02, Arizona Revised Statutes, is amended to read:

START_STATUTE3-1003.02. Duties of the executive director and comptroller

A. The executive director shall be:

1. The chief executive and administrative officer of the Arizona coliseum and exposition center, including the Arizona state fair and exposition center.

2. Responsible for organizing and prescribing the duties of all positions and departmental units in the Arizona coliseum state fair and exposition center, including the coliseum manager and comptroller. The executive director shall, :

(a) With the advice and consent of the board, appoint either the coliseum manager or the comptroller as deputy director to perform the functions, powers and duties of the executive director if the executive director is unable to act.

(b) subject to title 41, chapter 4, article 4 and, as applicable, article 5, appoint or remove in the manner prescribed by law such personnel considered necessary for the efficient work of the Arizona coliseum state fair and exposition center.

3. Required to make and submit to the Arizona exposition and state fair board monthly reports covering all activities of the Arizona coliseum state fair and exposition center.

B. The comptroller shall serve as deputy director to perform the functions, powers and duties of the executive director if the executive director is unable to act.� In addition to other duties assigned by the executive director, the comptroller shall:

1. Act as the fiscal agent with complete authority to process all cash receipts.

2. Assume responsibility for the maintenance of satisfactory internal accounting controls which that are required for the preservation of assets.

3. Control all books, records or other data required for preparation of a complete financial statement of the activities of the Arizona coliseum state fair and exposition center.

4. Maintain cost factors and accounting records which that are sufficient in scope to clearly reflect all profits and losses. END_STATUTE

Sec. 7. Section 3-1004, Arizona Revised Statutes, is amended to read:

START_STATUTE3-1004. Contracts with federal agencies

The Arizona exposition and state fair board may apply to and contract with the United States or any department or agency thereof of the United States to obtain funds monies appropriated by the federal government. The contract shall not obligate the state to advance any funds monies other than from the Arizona coliseum state fair and exposition center fund. , and funds Monies so obtained shall be expended only for improvement of the Arizona coliseum state fair and exposition center and facilities. END_STATUTE

Sec. 8. Section 3-1005, Arizona Revised Statutes, is amended to read:

START_STATUTE3-1005. State fair and exposition center fund; exposition and state fair board permanent revolving fund

A. Monies received by the Arizona exposition and state fair board, other than those donations referred to in section 3‑1003, subsection A, paragraph 9 and other than those received by the board as ticket sales pursuant to a valid lease of the coliseum, shall be deposited, pursuant to sections 35‑146 and 35‑147, in the Arizona state fair and exposition and state fair center fund and are subject to legislative appropriation. Ticket sale monies received pursuant to a valid lease of the coliseum may be deposited with a bank qualified to receive public deposits under title 35, chapter 2, article 2.1, in which case the signature of the executive director or an employee designated by the executive director and the lessee shall be required on any instrument withdrawing such a deposit. Vouchers for authorized expenditures shall be signed by the executive director or by an employee who is designated by the executive director. The receipt and expenditure of funds monies shall be as prescribed by law and the rules of the director of the department of administration. Balances remaining in the fund at the end of a fiscal year shall not revert to the state general fund.

B. On notice from the executive director, the state treasurer shall invest and divest monies in the Arizona state fair and exposition and state fair center fund in obligations issued or guaranteed by the United States or any of the senior debt of its agencies, sponsored agencies, corporations, sponsored corporations or instrumentalities, and monies earned from investment shall be credited to the Arizona state fair and exposition and state fair center fund.

C. Disbursements from an account of ticket sales received pursuant to a valid lease of the coliseum as described in subsection A of this section shall be limited to payments of amounts due to the lessor or lessee pursuant to the lease. No disbursements from this account shall be made for state wages, salaries or expenses. Upon the completion or termination of any lease pursuant to subsection A of this section, all monies accruing to the board shall be deposited, pursuant to sections 35‑146 and 35‑147.

D. C. There is established an exposition and state fair board permanent revolving fund for use in making change at fairs and for purchases and activities requiring immediate cash outlay for events sponsored by the Arizona exposition and state fair board that are proper as ultimate claims for payment from the state fair and exposition and state fair center fund.� The amount of the exposition and state fair board permanent revolving fund shall not exceed sixty thousand dollars, except for a period beginning October 1 and ending November 30 each year when the amount of the exposition and state fair board permanent revolving fund shall not exceed four hundred thousand dollars for use during the annual state fair. Expenditures from this fund and reimbursement to the exposition and state fair board permanent revolving fund shall be as prescribed by rules of the director of the department of administration. All monies deposited in the exposition and state fair board permanent revolving fund are appropriated to the Arizona exposition and state fair board for the purposes provided in this subsection and are exempt from the provisions of section 35‑190 relating to lapsing of appropriations. The exposition and state fair board permanent revolving fund shall be established maintained as a separate account on the books of the Arizona exposition and state fair board and a full accounting of its use shall be made to the director of the department of administration annually or as required by the director of the department of administration. END_STATUTE

Sec. 9. Section 3-1006, Arizona Revised Statutes, is amended to read:

START_STATUTE3-1006. Body corporate

A. Except as may be otherwise provided by the terms of this chapter, all of the powers and duties of the Arizona state fair commission are vested in the Arizona exposition and state fair board. Whenever the name "state fair commission" or "commission", denoting the Arizona state fair commission, is used in any statute, appropriation or budget, it shall be held to include and mean the Arizona exposition and state fair board. The provisions of this chapter shall not annul or modify any lawful contract heretofore made and executed by the state fair commission, including resolution number 102, of the state fair commission, the bonds issued thereunder, and all of the terms and provisions of such resolution and bonds shall continue in full force and effect and are binding upon the Arizona exposition and state fair board.

B. The Arizona exposition and state fair board shall constitute a body corporate with the name of Arizona exposition and state fair board and by that name shall be known and shall have perpetual succession. END_STATUTE

Sec. 10. Section 3-1007, Arizona Revised Statutes, is amended to read:

START_STATUTE3-1007. Additional powers

A. In addition to the powers which that it may now have, the Arizona exposition and state fair board shall have power may:

1. To Acquire by purchase or gift and to hold and dispose of personal property, or rights or interest therein in personal property.

2. To Construct, furnish and equip all proper exhibition halls, and auditoriums and coliseums, and to furnish and equip the same.

3. To borrow money and issue bonds payable solely from the net revenues derived from the operation of the Arizona coliseum and exposition center and all of the facilities thereof, after providing for all expenses of operation and maintenance, and to provide for the rights of the holders hereof. All such bond issues hereinafter approved by the board shall be subject to approval by the legislature.

B. All procurement pursuant to this section shall be made as prescribed in title 41, chapter 23 unless otherwise provided by law. END_STATUTE

Sec. 11. Repeal

Sections 3-1007.01, 3-1008, 3-1009, 3-1010, 3-1011 and 3-1012, Arizona Revised Statutes, are repealed.

Sec. 12. Section 4-101, Arizona Revised Statutes, is amended to read:

START_STATUTE4-101. Definitions

In this title, unless the context otherwise requires:

1. "Act of violence" means an incident consisting of a riot, a brawl or a disturbance, in which bodily injuries are sustained by any person and such injuries would be obvious to a reasonable person, or tumultuous conduct of sufficient intensity as to require the intervention of a peace officer to restore normal order, or an incident in which a weapon is brandished, displayed or used.� Act of violence does not include the use of nonlethal devices by a peace officer.

2. "Aggrieved party" means a person who resides at, owns or leases property within a one mile radius of a premises proposed to be licensed and who filed a written request with the department to speak in favor of or opposition to the issuance of the license no later than sixty days after the filing of the application or fifteen days after action by the local governing body, whichever is later.

3. "Beer" means any beverage obtained by the alcoholic fermentation, infusion or decoction of barley malt, hops, or other ingredients not drinkable, or any combination of them.

4. "Board" means the state liquor board.

5. "Bona fide guest" means:

(a) An individual who is personally familiar to the member, who is personally sponsored by the member and whose presence as a guest is in response to a specific and personal invitation.

(b) In the case of a club that meets the criteria prescribed in paragraph 7, subdivision (a) of this section, a current member of the armed services of the United States who presents proper military identification and any member of a recognized veterans' organization of the United States and of any country allied with the United States during current or past wars or through treaty arrangements.

6. "Broken package" means any container of spirituous liquor on which the United States tax seal has been broken or removed, or from which the cap, cork or seal placed thereupon by the manufacturer has been removed.

7. "Club" includes any of the following organizations where the sale of spirituous liquor for consumption on the premises is made to members only:

(a) A post, chapter, camp or other local unit composed solely of veterans and its duly recognized auxiliary that has been chartered by the Congress of the United States for patriotic, fraternal or benevolent purposes and that has, as the owner, lessee or occupant, operated an establishment for that purpose in this state.

(b) A chapter, aerie, parlor, lodge or other local unit of an American national fraternal organization that has, as the owner, lessee or occupant, operated an establishment for fraternal purposes in this state. An American national fraternal organization as used in this subdivision shall actively operate in not less than thirty‑six states or have been in active continuous existence for not less than twenty years.

(c) A hall or building association of a local unit mentioned in subdivisions (a) and (b) of this paragraph, all of the capital stock of which is owned by the local unit or the members, and that operates the clubroom facilities of the local unit.

(d) A golf club that has more than fifty bona fide members and that owns, maintains or operates a bona fide golf links together with a clubhouse.

(e) A social club with more than one hundred bona fide members who are actual residents of the county in which it is located, that owns, maintains or operates club quarters, that is authorized and incorporated to operate as a nonprofit club under the laws of this state, and that has been continuously incorporated and operating for a period of not less than one year. The club shall have had, during this one year period, a bona fide membership with regular meetings conducted at least once each month, and the membership shall be and shall have been actively engaged in carrying out the objects of the club.� The club's membership shall consist of bona fide dues paying members paying at least six dollars per year, payable monthly, quarterly or annually, which have been recorded by the secretary of the club, and the members at the time of application for a club license shall be in good standing having for at least one full year paid dues. At least fifty‑one per cent percent of the members shall have signified their intention to secure a social club license by personally signing a petition, on a form prescribed by the board, which shall also include the correct mailing address of each signer.� The petition shall not have been signed by a member at a date earlier than one hundred eighty days before the filing of the application.� The club shall qualify for exemption from the payment of state income taxes under title 43. It is the intent of this subdivision that a license shall not be granted to a club that is, or has been, primarily formed or activated to obtain a license to sell liquor, but solely to a bona fide club, where the sale of liquor is incidental to the main purposes of the club.

(f) An airline club operated by or for airlines that are certificated by the United States government and that maintain or operate club quarters located at airports with international status.

8. "Company" or "association", when used in reference to a corporation, includes successors or assigns.

9. "Control" means the power to direct or cause the direction of the management and policies of an applicant, licensee or controlling person, whether through the ownership of voting securities or a partnership interest, by agreement or otherwise. Control is presumed to exist if a person has the direct or indirect ownership of or power to vote ten per cent percent or more of the outstanding voting securities of the applicant, licensee or controlling person or to control in any manner the election of one or more of the directors of the applicant, licensee or controlling person.� In the case of a partnership, control is presumed to mean the general partner or a limited partner who holds ten per cent percent or more of the voting rights of the partnership. For the purposes of determining the percentage of voting securities owned, controlled or held by a person, there shall be aggregated with the voting securities attributed to the person the voting securities of any other person directly or indirectly controlling, controlled by or under common control with the other person, or by an officer, partner, employee or agent of the person or by a spouse, parent or child of the person.� Control is also presumed to exist if a creditor of the applicant, licensee or controlling person holds a beneficial interest in ten per cent percent or more of the liabilities of the licensee or controlling person.

10. "Controlling person" means a person directly or indirectly possessing control of an applicant or licensee.

11. "Craft distiller" means a distiller in the United States or in a territory or possession of the United States that holds a license pursuant to section 4-205.10.

12. "Department" means the department of liquor licenses and control.

13. "Director" means the director of the department of liquor licenses and control.

14. "Distilled spirits" includes alcohol, brandy, whiskey, rum, tequila, mescal, gin, absinthe, a compound or mixture of any of them or of any of them with any vegetable or other substance, alcohol bitters, bitters containing alcohol, fruits preserved in ardent spirits, and any alcoholic mixture or preparation, whether patented or otherwise, that may in sufficient quantities produce intoxication.

15. "Employee" means any person who performs any service on licensed premises on a full‑time, part‑time or contract basis with consent of the licensee, whether or not the person is denominated an employee, independent contractor or otherwise. Employee does not include a person exclusively on the premises for musical or vocal performances, for repair or maintenance of the premises or for the delivery of goods to the licensee.

16. "Farm winery" means a winery in the United States or in a territory or possession of the United States that holds a license pursuant to section 4‑205.04.

17. "Government license" means a license to serve and sell spirituous liquor on specified premises available only to a state agency, state board, state commission, county, city, town, community college or state university or the national guard or Arizona coliseum and exposition center on application by the governing body of a state agency, state board, state commission, county, city, town, community college or state university or the national guard or Arizona exposition and state fair board.

18. "Legal drinking age" means twenty‑one years of age or older.

19. "License" means a license or an interim retail permit issued pursuant to this title.

20. "License fees" means fees collected for license issuance, license application, license renewal, interim permit issuance and license transfer between persons or locations.

21. "Licensee" means a person who has been issued a license or an interim retail permit pursuant to this title or a special event licensee.

22. "Manager" means a natural person who meets the standards required of licensees and who has authority to organize, direct, carry on, control or otherwise operate a licensed business on a temporary or full‑time basis.

23. "Microbrewery" means a brewery in the United States or in a territory or possession of the United States that meets the requirements of section 4‑205.08.

24. "Off‑sale retailer" means any person operating a bona fide regularly established retail liquor store selling spirituous liquors, wines and beer, and any established retail store selling commodities other than spirituous liquors and engaged in the sale of spirituous liquors only in the original unbroken package, to be taken away from the premises of the retailer and to be consumed off the premises.

25. "On‑sale retailer" means any person operating an establishment where spirituous liquors are sold in the original container for consumption on or off the premises or in individual portions for consumption on the premises.

26. "Person" includes a partnership, limited liability company, association, company or corporation, as well as a natural person.

27. "Premises" or "licensed premises" means the area from which the licensee is authorized to sell, dispense or serve spirituous liquors under the provision of the license.� Premises or licensed premises includes a patio that is not contiguous to the remainder of the premises or licensed premises if the patio is separated from the remainder of the premises or licensed premises by a public or private walkway or driveway not to exceed thirty feet, subject to rules the director may adopt to establish criteria for noncontiguous premises.

28. "Registered mail" includes certified mail.

29. "Registered retail agent" means any person who is authorized pursuant to section 4‑222 to purchase spirituous liquors for and on behalf of himself and other retail licensees.

30. "Repeated acts of violence" means two or more acts of violence occurring within seven days, three or more acts of violence occurring within thirty days or acts of violence occurring with any other similar frequency which the director determines to be unusual or deserving of review.

31. "Sell" includes soliciting or receiving an order for, keeping or exposing for sale, directly or indirectly delivering for value, peddling, keeping with intent to sell and trafficking in.

32. "Spirituous liquor" includes alcohol, brandy, whiskey, rum, tequila, mescal, gin, wine, porter, ale, beer, any malt liquor or malt beverage, absinthe, a compound or mixture of any of them or of any of them with any vegetable or other substance, alcohol bitters, bitters containing alcohol, any liquid mixture or preparation, whether patented or otherwise, which produces intoxication, fruits preserved in ardent spirits, and beverages containing more than one‑half of one per cent percent of alcohol by volume.

33. "Vehicle" means any means of transportation by land, water or air, and includes everything made use of in any way for such transportation.

34. "Vending machine" means a machine that dispenses merchandise through the means of coin, token, credit card or other nonpersonal means of accepting payment for merchandise received.

35. "Veteran" means a person who has served in the United States air force, army, navy, marine corps or coast guard, as an active nurse in the services of the American red cross, in the army and navy nurse corps in time of war, or in any expedition of the armed forces of the United States, and who has received a discharge other than dishonorable.

36. "Voting security" means any security presently entitling the owner or holder of the security to vote for the election of directors of an applicant, licensee or controlling person.

37. "Wine" means the product obtained by the fermentation of grapes or other agricultural products containing natural or added sugar or any such alcoholic beverage fortified with grape brandy and containing not more than twenty‑four per cent percent of alcohol by volume. END_STATUTE

Sec. 13. Section 4-205.03, Arizona Revised Statutes, is amended to read:

START_STATUTE4-205.03. Government license; issuance; regulatory provisions; definitions

A. The department may issue a government license to any state agency, state board, state commission, county, city, town, community college or state university, or the national guard or the Arizona exposition and state fair board on application authorized by the governing body of the state agency, state board, state commission, county, city, town, community college or state university, or the national guard or the Arizona exposition and state fair board.

B. If the department issues the license, it shall be issued in the name of the state agency, state board, state commission, county, city, town, community college or state university, or the national guard or the Arizona coliseum and exposition center. No application shall be filed unless authorized by the respective governing body. The application shall designate for each location a manager or other individual responsible for administering the license. The state agency, state board, state commission, county, city, town, community college or state university, or the national guard or the Arizona exposition and state fair board shall give notice to the department within ten days of any change in the designee. The state agency, state board, state commission, county, city, town, community college or state university, or the national guard or the Arizona coliseum and exposition center to which a license is issued is subject to the fine or penalty prescribed for any violation of the statutes relating to alcoholic beverages.

C. The holder of a government license may sell and serve spirituous liquors solely for consumption on the premises for which the license is issued. A separate license is required for each premises on which spirituous liquors are served. A single premises licensed under this section may consist of not more than one dock area that is designated by a city or town and that is situated on a lake owned by the city or town and not more than thirty boats that are operated on the lake. A dock and boats that comprise a premises under this subsection shall be operated in compliance with subsection G F of this section.

D. A governing body in possession of a government license may by appropriate legislation or rule authorize the use of the license pursuant to a concession agreement approved by the governing body.

E. The department may adopt rules in order to administer this section.

F. Any agreement entered into by the Arizona exposition and state fair board allowing an indicated concessionaire to serve alcoholic beverages pursuant to this section shall contain a provision requiring the concessionaire to do both of the following:

1. Fully indemnify and hold harmless this state and any of its agencies, boards, commissions, officers and employees against any liability for loss or damage incurred either on or off state property and resulting from the negligent serving of alcoholic beverages by the concessionaire or the concessionaire's agents or employees.

2. Post a surety bond in favor of this state in an amount determined by the Arizona exposition and state fair board to be sufficient to indemnify this state against the potential liability or name this state as an additional insured in a liability policy that provides sufficient coverage to indemnify this state as determined by the Arizona exposition and state fair board.

G. F. The following apply to the operation of a dock and boats as a licensed premises pursuant to subsection C of this section:

1. Liquor may be sold only for consumption on the premises in conjunction with consumption of food.

2. Liquor shall not be served or consumed on the dock. Liquor shall not be served on a boat earlier than fifteen minutes before the boat is scheduled to depart from the dock and shall not be served after a boat returns to the dock.

3. A person shall not be served more than thirty‑two ounces of beer, one liter of wine or four ounces of distilled spirits while the person is on a boat.

4. A person shall not bring spirituous liquor onto a boat other than liquor purchased by the licensee or a concessionaire for resale under the provisions of this title.

5. The pilot of each boat, all crew members and all persons who sell or serve spirituous liquor on each boat are deemed employees of the licensee for purposes of this title.

6. The pilot of each boat shall either have a current and valid coast guard operator's license or shall have successfully completed a safety and operator training course approved by the city or town.

7. Spirituous liquor shall not be served, consumed or possessed by a customer on the boat between the hours of 11:00 p.m. and 5:00 p.m.

8. All provisions of this title and rules adopted pursuant to this title that are not inconsistent with this section apply to sales and consumption of spirituous liquor on the licensed premises.

H. G. For the purposes of this section:

1. "Arizona coliseum and exposition center" includes all property under the control of the Arizona exposition and state fair board as provided in section 3‑1001.

2. 1. "Boat" means a seaworthy vessel that is designed to carry and that is capable of carrying not less than fifteen nor more than forty‑five passengers, that has a displacement of not more than ten tons and that possesses a current coast guard certificate.

3. 2. "Community college" has the same meaning prescribed in section 15‑1401.

4. 3. "State university" means institutions as described in section 15‑1601. END_STATUTE

Sec. 14. Section 5-804, Arizona Revised Statutes, is amended to read:

START_STATUTE5-804. Administrative powers and duties

A. The board of directors, on behalf of the authority, may:

1. Adopt and use a corporate seal.

2. Sue and be sued.

3. Enter into contracts, including intergovernmental agreements under title 11, chapter 7, article 3, as necessary to carry out the purposes and requirements of this chapter.

4. Enter into an intergovernmental agreement under title 11, chapter 7, article 3 with the Arizona exposition and state fair board for the joint use of properties and facilities, sharing administration, personnel and resources and other matters that are beneficial to the purposes of the multipurpose facility and the state fair.

5. 4. Adopt administrative rules as necessary to administer and operate the authority and any property under its jurisdiction.

6. 5. Acquire by any lawful means and operate, maintain, encumber and dispose of real and personal property and interests in property.

7. 6. Retain legal counsel and other consultants as necessary to carry out the purposes of the authority.

8. 7. Enter into contracts with a professional football league for its championship game or with a nonprofit community based organization that operates or administers an intercollegiate national championship game that provide for the payment to the league or organization of transaction privilege tax revenues derived pursuant to section 42‑5073, subsection G, paragraph 1 from sales of admissions to these championship games if the authority has fully paid the current year's required principal and interest payments on any outstanding authority bonds for which these revenues were pledged pursuant to article 3 of this chapter.

9. 8. Enter into contracts with a nonprofit community based organization that sponsors an intercollegiate national championship game that provide for the payment to the organization of a ticket surcharge or facility user fee associated with parking if the authority has fully paid the current year's required principal and interest payments on any outstanding authority bonds for which these revenues were pledged pursuant to article 3 of this chapter.

B. The board of directors shall:

1. Appoint from among its members a chairman, a secretary and such other officers as may be necessary to conduct its business.

2. Employ an executive director and prescribe the terms and conditions of employment.

3. Keep and maintain a complete and accurate record of all of its proceedings.� The board is a public body for purposes of title 38, chapter 3, article 3.1 and title 39, chapter 1.

4. Provide for the use, maintenance and operation of the properties and interests owned or controlled by the authority.

5. On or before September 12, 2002, approve a site for the construction of the multipurpose facility proposed at any time before that date by site hosts. END_STATUTE

Sec. 15. Section 41-2501, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2501. Applicability

A. This chapter applies only to procurements initiated after January 1, 1985 unless the parties agree to its application to procurements initiated before that date.

B. This chapter applies to every expenditure of public monies, including federal assistance monies except as otherwise specified in section 41‑2637, by this state, acting through a state governmental unit as defined in this chapter, under any contract, except that this chapter does not apply to either grants as defined in this chapter, or contracts between this state and its political subdivisions or other governments, except as provided in chapter 24 of this title and in article 10 of this chapter. This chapter also applies to the disposal of state materials. This chapter and rules adopted under this chapter do not prevent any state governmental unit or political subdivision from complying with the terms of any grant, gift, bequest or cooperative agreement.

C. All political subdivisions and other local public agencies of this state may adopt all or any part of this chapter and the rules adopted pursuant to this chapter.

D. Notwithstanding any other law, sections 41‑2517 and 41-2546 apply to any agency as defined in section 41‑1001, including the office of the governor.

E. The Arizona board of regents and the legislative and judicial branches of state government are not subject to this chapter except as prescribed in subsection F of this section.

F. The Arizona board of regents and the judicial branch shall adopt rules prescribing procurement policies and procedures for themselves and institutions under their jurisdiction. The rules must be substantially equivalent to the policies and procedures prescribed in this chapter.

G. The Arizona state lottery commission is exempt from this chapter for procurement relating to the design and operation of the lottery or purchase of lottery equipment, tickets and related materials. The executive director of the Arizona state lottery commission shall adopt rules substantially equivalent to the policies and procedures in this chapter for procurement relating to the design and operation of the lottery or purchase of lottery equipment, tickets or related materials.� All other procurement shall be as prescribed by this chapter.

H. The Arizona health care cost containment system administration is exempt from this chapter for provider contracts pursuant to section 36‑2904, subsection A and contracts for goods and services, including program contractor contracts pursuant to title 36, chapter 29, articles 2 and 3. All other procurement, including contracts for the statewide administrator of the program pursuant to section 36‑2903, subsection B, shall be as prescribed by this chapter.

I. Arizona industries for the blind is exempt from this chapter for purchases of finished goods from members of national industries for the blind and for purchases of raw materials for use in the manufacture of products for sale pursuant to section 41‑1972. All other procurement shall be as prescribed by this chapter.

J. Arizona correctional industries is exempt from this chapter for purchases of raw materials, components and supplies that are used in the manufacture or production of goods or services for sale entered into pursuant to section 41‑1622.� All other procurement shall be as prescribed by this chapter.

K. The state transportation board and the director of the department of transportation are exempt from this chapter other than section 41‑2586 for the procurement of construction or reconstruction, including engineering services, of transportation facilities or highway facilities and any other services that are directly related to land titles, appraisals, real property acquisition, relocation, property management or building facility design and construction for highway development and that are required pursuant to title 28, chapter 20.

L. The Arizona highways magazine is exempt from this chapter for contracts for the production, promotion, distribution and sale of the magazine and related products and for contracts for sole source creative works entered into pursuant to section 28‑7314, subsection A, paragraph 5.� All other procurement shall be as prescribed by this chapter.

M. The secretary of state is exempt from this chapter for contracts entered into pursuant to section 41‑1012 to publish and sell the administrative code. All other procurement shall be as prescribed by this chapter.

N. This chapter is not applicable to contracts for professional witnesses if the purpose of such contracts is to provide for professional services or testimony relating to an existing or probable judicial proceeding in which this state is or may become a party or to contract for special investigative services for law enforcement purposes.

O. The head of any state governmental unit, in relation to any contract exempted by this section from this chapter, has the same authority to adopt rules, procedures or policies as is delegated to the director pursuant to this chapter.

P. Agreements negotiated by legal counsel representing this state in settlement of litigation or threatened litigation are exempt from this chapter.

Q. This chapter is not applicable to contracts entered into by the department of economic security:

1. With a provider licensed or certified by an agency of this state to provide child day care services.

2. With area agencies on aging created pursuant to the older Americans act of 1965 (P.L. 89‑73; 79 Stat. 218; 42 United States Code sections 3001 through 3058ff).

3. For services pursuant to title 36, chapter 29, article 2.

4. With an eligible entity as defined by Public Law 105‑285, section 673(1)(a)(i) 673(1)(A)(i), as amended, for designated community services block grant program monies and any other monies given to the eligible entity that accomplishes the purpose of Public Law 105‑285, section 672.

R. The department of health services may not require that persons with whom it contracts follow this chapter for the purposes of subcontracts entered into for the provision of the following:

1. Mental health services pursuant to section 36‑189, subsection B.

2. Services for the seriously mentally ill pursuant to title 36, chapter 5, article 10.

3. Drug and alcohol services pursuant to section 36‑141.

4. Domestic violence services pursuant to title 36, chapter 30, article 1.

S. The department of health services is exempt from this chapter for contracts for services of physicians at the Arizona state hospital.

T. Contracts for goods and services approved by the board of trustees of the public safety personnel retirement system are exempt from this chapter.

U. The Arizona department of agriculture is exempt from this chapter with respect to contracts for private labor and equipment to effect cotton or cotton stubble plow‑up pursuant to rules adopted under title 3, chapter 2, article 1.

V. The Arizona state parks board is exempt from this chapter for purchases of guest supplies and items for resale such as food, linens, gift items, sundries, furniture, china, glassware and utensils for the facilities located in the Tonto natural bridge state park.

W. The Arizona state parks board is exempt from this chapter for the purchase, production, promotion, distribution and sale of publications, souvenirs and sundry items obtained and produced for resale.

X. The Arizona state schools for the deaf and the blind are exempt from this chapter for the purchase of textbooks and when purchasing products through a cooperative that is organized and operates in accordance with state law if such products are not available on a statewide contract and are related to the operation of the schools or are products for which special discounts are offered for educational institutions.

Y. Expenditures of monies in the morale, welfare and recreational fund established by section 26‑153 are exempt from this chapter.

Z. Notwithstanding section 41‑2534, the director of the state department of corrections may contract with local medical providers in counties with a population of less than four hundred thousand persons for the following purposes:

1. To acquire hospital and professional medical services for inmates who are incarcerated in state department of corrections facilities that are located in those counties.

2. To ensure the availability of emergency medical services to inmates in all counties by contracting with the closest medical facility that offers emergency treatment and stabilization.

AA. The department of environmental quality is exempt from this chapter for contracting for procurements relating to the water quality assurance revolving fund program established pursuant to title 49, chapter 2, article 5.� The department shall engage in a source selection process that is similar to the procedures prescribed by this chapter. The department may contract for remedial actions with a single selection process.� The exclusive remedy for disputes or claims relating to contracting pursuant to this subsection is as prescribed by article 9 of this chapter and the rules adopted pursuant to that article.� All other procurement by the department shall be as prescribed by this chapter.

BB. The motor vehicle division of the department of transportation is exempt from this chapter for third‑party authorizations pursuant to title 28, chapter 13, only if all of the following conditions exist:

1. The division does not pay any public monies to an authorized third party.

2. Exclusivity is not granted to an authorized third party.

3. The director has complied with the requirements prescribed in title 28, chapter 13 in selecting an authorized third party.

CC. This section does not exempt third‑party authorizations pursuant to title 28, chapter 13 from any other applicable law.

DD. The state forester is exempt from this chapter for purchases and contracts relating to wildland fire suppression and pre‑positioning equipment resources and for other activities related to combating wildland fires and other unplanned risk activities, including fire, flood, earthquake, wind and hazardous material responses.� All other procurement by the state forester shall be as prescribed by this chapter.

EE. The cotton research and protection council is exempt from this chapter for procurements.

FF. Expenditures of monies in the Arizona agricultural protection fund established by section 3‑3304 are exempt from this chapter.

GG. The Arizona commerce authority is exempt from this chapter, except article 10 for the purpose of cooperative purchases.� The authority shall adopt policies, procedures and practices, in consultation with the department of administration, that are similar to and based on the policies and procedures prescribed by this chapter for the purpose of increased public confidence, fair and equitable treatment of all persons engaged in the process and fostering broad competition while accomplishing flexibility to achieve the authority's statutory requirements.� The authority shall make its policies, procedures and practices available to the public.� The authority may exempt specific expenditures from the policies, procedures and practices.

HH. The Arizona exposition and state fair board is exempt from this chapter for contracts for professional entertainment.

II. HH. This chapter does not apply to the purchase of water, gas or electric utilities.

JJ. II. This chapter does not apply to professional certifications, professional memberships and conference registrations.

KK. JJ. The department of gaming is exempt from this chapter for problem gambling treatment services contracts with licensed behavioral health professionals.

LL. KK. This chapter does not apply to contracts for credit reporting services.

MM. LL. This chapter does not apply to contracts entered into by the department of child safety:

1. With a provider of family foster care pursuant to section 8‑503 or 36‑554.

2. With an eligible entity as defined by Public Law 105‑285, section 673(1)(A)(i), as amended, for designated community services block grant program monies and any other monies given to the eligible entity that accomplishes the purpose of Public Law 105‑285, section 672. END_STATUTE

Sec. 16. Selecting a new state fair site

The Arizona exposition and state fair board shall:

1. Study the relocation of the state fair and identify available sites for potential acquisition. In conducting its study, the board shall consider:

(a) The potential volume of attendance at the state fair and other events held on the premises.

(b) Requirements for and availability of on‑site and off‑site parking.

(d) The impact on the surrounding property, considering the nature and frequency of events held on the premises.

(e) Vehicular and air traffic volume and patterns and access to arterial streets, highways and freeways.

(f) The availability of law enforcement, fire protection and other municipal, governmental and utility services and facilities.

(g) Alternative methods of financing, acquiring and developing the site.

(h) The financial impacts on local governments due to increased commerce and removal of the property from the tax base.

2. On or before September 30, 2015, report its findings and recommendations to the governor, the president of the senate, the speaker of the house of representatives, the chairperson of the appropriations committee of the senate, and the chairperson of the appropriations committee of the house of representatives.

Sec. 17. Sale and lease of state fairgrounds, veterans memorial coliseum and exposition center

A. The Arizona exposition and state fair board shall sell to the highest and best bidder at public auction held for that purpose all of the rights, title and other interests of this state in the real estate, improvements and appurtenant personal property constituting the current state fairgrounds located on the northeast corner of McDowell Road and 19th Avenue in Phoenix, including the Veterans Memorial Coliseum and Exposition Center, to a buyer whose principal place of business is located in this state.� The property is subject to two current independent appraisals and an independent title search before the property is offered for sale.�

B. The contract for the sale shall provide:

1. For the lease and use of the property by the board from the buyer for the purposes of conducting the Arizona state fair and other events as provided under currently existing contractual obligations of the board pending the relocation and construction of new facilities for the state fair and exposition center pursuant to this act.� The lease shall provide that:

(a) The obligation to make payments under the lease is a current expense of the board, payable solely from appropriated monies, and is not a general obligation of indebtedness of this state or the board.

(b) If the legislature fails to appropriate the monies for any term of the lease, the lease terminates at the end of the term and this state and the board are relieved of any further obligation under the lease.

(c) The board will use its best efforts to budget, obtain, allocate and maintain sufficient appropriated monies to make payments under the lease, but the lease shall acknowledge that appropriating state monies is a legislative act and is beyond the control of the board or any other party to the lease.

2. For the reversion and resale of the property on any material default or other breach of contract by the buyer.

3. That the buyer coordinate with the state preservation officer to nominate the property to the state and national registers of historic places.

4. That the buyer and subsequent interest holders not use the property as a factory.

5. For the sale of the property to be completed as soon as practicable after the effective date of this act and to be completed before July 1, 2016.

C. The sale under subsection A of this section and lease under subsection B of this section are subject to review by the attorney general and joint committee on capital review.

D. All proceeds of the sale shall be deposited, pursuant to sections 35-145 and 35-146, Arizona Revised Statutes, in the state general fund.