H.B. 322

1

STATE FAIR PARK AMENDMENTS
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Bill Wright
5 AN ACT RELATING TO COMMUNITY AND ECONOMIC DEVELOPMENT; MODIFYING
6 LEASE TERM AND REQUIREMENTS FOR STATE FAIR PARK; ADDRESSING
7 MAINTENANCE OF FACILITIES; CLARIFYING RESPONSIBILITY FOR STATE FAIR;
8 AND MAKING TECHNICAL CORRECTIONS.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 AMENDS:
11 9-4-1103, as enacted by Chapter 260, Laws of Utah 1995
12 63A-5-306, as enacted by Chapter 260, Laws of Utah 1995
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 9-4-1103 is amended to read:
15 9-4-1103. Utah State Fair Corporation -- Legal Status -- Powers.
16 (1) There is created an independent public nonprofit corporation known as the "Utah State
17 Fair Corporation."
18 (2) The board shall file articles of incorporation for the corporation with the Division of
19 Corporations and Commercial Code.
20 (3) The corporation shall, subject to this part, have all powers and authority permitted
21 nonprofit corporations by law.
22 (4) The corporation shall, subject to approval of the board:
23 [(a) arrange and plan expositions of livestock, poultry, agriculture, domestic science,
24 horticulture, floriculture, mineral and industry, manufactured articles, and domestic animals to
25 stimulate and promote livestock breeding, agriculture, horticulture, mining, manufacturing,
26 mechanical arts, sciences, current and emerging industry arts, creative arts, and educational
27 pursuits of the people of Utah; ]

1 [(b)] (a) have general management, supervision, and control over all activities relating to
2 the state fair and have charge of all state expositions except as otherwise provided by statute;
3 [(c) provide, sponsor, and arrange] (b) for public entertainment, displays, and exhibits
4 [and] or similar events:
5 (i) provide, sponsor, or arrange the events;
6 (ii) publicize and promote the [various] events[, securing]; and
7 (iii) secure funds to cover the cost of the exhibits from:
8 (A) private contributions [and];
9 (B) public appropriations[,];
10 (C) admission charges[,]; and [by]
11 (D) other lawful means;
12 [(d)] (c) establish the time, place, and purpose of state expositions; and
13 [(e)] (d) acquire and designate exposition sites.
14 (5) (a) The corporation shall:
15 (i) use generally accepted accounting principals in accounting for its assets, liabilities, and
16 operations;
17 (ii) seek corporate sponsorships for the state fair park and for individual buildings or
18 facilities within the fair park;
19 (iii) work with county and municipal governments, the Salt Lake Convention and Visitor's
20 Bureau, the Utah Travel Council, and other entities to develop and promote expositions and the
21 use of the state fair park;
22 (iv) develop and maintain a marketing program to promote expositions and the use of the
23 state fair park;
24 (v) in cooperation with the Division of Facilities Construction and Management, maintain
25 the physical appearance and structural integrity of the state fair park and the buildings located at
26 the state fair park;
27 (vi) hold an annual [exposition at the state fair park;] exhibition that:
28 (A) is called the state fair or a similar name;
29 (B) includes expositions of livestock, poultry, agricultural, domestic science, horticultural,
30 floricultural, mineral, and industrial products, manufactured articles, and domestic animals that,
31 in the corporation's opinion will best stimulate agricultural, industrial, artistic, and educational

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1 pursuits and the sharing of talents among the people of Utah;
2 (C) includes the award of premiums for the best specimens of the exhibited articles and
3 animals;
4 (D) permits competition by livestock exhibited by citizens of other states and territories
5 of the United States; and
6 (E) is arranged according to plans approved by the board;
7 (vii) fix the conditions of entry to the exposition described in Subsection (5)(a)(vi); and
8 (viii) publish a list of premiums that will be awarded at the exhibition described in
9 Subsection (5)(a)(vi) for the best specimens of exhibited articles and animals.
10 (b) [The] In addition to the state fair to be held in accordance with Subsection (5)(a)(vi),
11 the corporation may[: (i)] hold [an annual exhibition] other exhibitions of livestock, poultry,
12 agricultural, domestic science, horticultural, floricultural, mineral, and industrial products,
13 manufactured articles, and domestic animals that, in its opinion, will best stimulate agricultural,
14 industrial, artistic, and educational pursuits and the sharing of talents among the people of Utah[;].
15 [(ii) award premiums for the best specimens of the exhibited articles and animals; and]
16 [(iii) permit competition by livestock exhibited by citizens of other states and territories
17 of the United States.]
18 (6) The corporation may:
19 (a) employ advisers, consultants, and agents, including financial experts and independent
20 legal counsel, and fix their compensation;
21 (b) procure insurance against any loss in connection with its property and other assets,
22 including mortgage loans;
23 (c) receive and accept aid or contributions of money, property, labor, or other things of
24 value from any source, including any grants or appropriations from any department, agency, or
25 instrumentality of the United States or Utah;
26 (d) hold, use, loan, grant, and apply that aid and those contributions to carry out the
27 purposes of the corporation, subject to the conditions, if any, upon which the aid and contributions
28 were made;
29 (e) enter into management agreements with any person or entity for the performance of
30 its functions or powers;
31 (f) establish whatever accounts and procedures as necessary to budget, receive, and

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1 disburse, account for, and audit all funds received, appropriated, or generated;
2 (g) enter into agreements for the leasing of any of the facilities at the state fair park, if
3 approved by the board; and
4 (h) sponsor events as approved by the board.
5 (7) (a) As an independent agency of the state of Utah, the corporation is exempt from:
6 (i) Title 63, Chapter 38, Budgetary Procedures Act;
7 (ii) Title 51, Chapter 7, State Money Management Act;
8 (iii) Title 63A, Administrative Services;
9 (iv) Title 51, Chapter 5, Funds Consolidation Act;
10 (v) Title 63, Chapter 56, Utah Procurement Code; and
11 (vi) Title 67, Chapter 19, Utah State Personnel Management Act.
12 (b) The board shall adopt policies parallel to and consistent with:
13 (i) Title 63, Chapter 38, Budgetary Procedures Act;
14 (ii) Title 51, Chapter 7, State Money Management Act;
15 (iii) Title 63A, Administrative Services;
16 (iv) Title 51, Chapter 5, Funds Consolidation Act; and
17 (v) Title 63, Chapter 56, Utah Procurement Code.
18 Section 2. Section 63A-5-306 is amended to read:
19 63A-5-306. Leasing of State Fair Park -- Lease -- Terms.
20 (1) As used in this section:
21 (a) "Corporation" means the Utah State Fair Corporation created in Section 9-4-1103.
22 (b) "Division" means the Division of Facilities Construction and Management.
23 (c) "State fair park " means the property and buildings owned by the state located at 155
24 North 1000 West, Salt Lake City, Utah.
25 (2) The division shall:
26 (a) beginning July 1, 1997, lease the state fair park to the corporation [on a year-to-year
27 lease beginning July 1, 1995] for a period of 20 years, at which time the lease may be renewed:
28 (i) at the discretion of the division; and
29 (ii) for any time-period h [determined by the division ] NEGOTIATED WITH THE
29a CORPORATION h .
30 (b) ensure that the lease [defines]:
31 (i) defines which party is responsible for repairs and maintenance to the grounds and
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1 buildings;
2 (ii) defines any restrictions on the use of the property or buildings[.], including the
3 construction of any new buildings or facilities at the state fair park; h [ and ] h
4 (iii) requires that for each year under the lease the corporation holds a state fair meeting
5 the requirements of Subsection 9-4-1103(5)(a)(vi) h ; AND
5a (iv) PROVIDES FOR THE RENEGOTIATION OF THE LEASE IF THE CORPORATION NO LONGER
5b OPERATES AS AN INDEPENDENT PUBLIC NONPROFIT CORPORATION AS PROVIDED IN TITLE 9,
5c CHAPTER 4, PART 11, UTAH STATE FAIR CORPORATION ACT h .
6 (3) Notwithstanding Subsection (2), the division h [ :
7 (a) shall terminate a lease with the corporation if the governor or, through a joint
8 resolution, the Legislature directs that the lease be terminated because it finds the structure or
9 operations of the corporation as an independent public nonprofit corporation significantly changes
10 from the structure or operations of the corporation on July 1, 1997; and
11 (b) ] h may review and adjust the amount of any payments made by the corporation under the
12 lease every three years beginning July 1, 2000.
13 (4) The state shall assume the responsibilities of the corporation under any contract that
14 is in effect on the day a lease between the division and the corporation terminates if:
15 (a) the contract is for the lease or construction of a building or facility at the state park;
15a h AND h
16 (b) the lease between the division and the corporation is terminated in accordance with
17 h [Subsection (3)(a); and ] THE RENEGOTIATION PROVIDED FOR UNDER SUBSECTION
17a (2)(b)(iv). h
18 h [ (c) the state is made a party to the contract at the time the corporation entered into the
19 contract. ] h
20 (5) (a) Payments made by the corporation under a lease with the division shall be
21 deposited into the Capital Project Fund.
22 (b) If in accordance with Subsection (3) h [ (b) ] h , the payments made by the corporation
22a under
23 a lease with the division are increased from the amount paid on July 1, 1997, the lease payments
24 made by the division shall be dedicated to capital improvements at the state fair park unless, as
25 part of the capital budget, the Legislature directs that the monies be used for other capitol
26 improvements.
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Legislative Review Note
as of 2-13-97 10:17 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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