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H.B. 277 Enrolled

                 

UTAH STATE FAIR PARK LEASE

                 
1999 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: Bill Wright

                  AN ACT RELATING TO STATE AFFAIRS; CLARIFYING THE LEASE; PROVIDING FOR
                  EXTENSION OF TERM OF LEASE; LIMITING ACTIVITIES OF THE UTAH STATE FAIR
                  CORPORATION; MAKING TECHNICAL CHANGES; AND PROVIDING AN EFFECTIVE
                  DATE.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                  AMENDS:
                      63A-5-306, as last amended by Chapter 214, Laws of Utah 1997
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 63A-5-306 is amended to read:
                       63A-5-306. Leasing of State Fair Park -- Lease -- Terms -- Limits on debt or
                  obligations.
                      (1) As used in this section:
                      (a) "Corporation" means the Utah State Fair Corporation created in Section 9-4-1103 .
                      (b) "Division" means the Division of Facilities Construction and Management.
                      (c) "State fair park" means the property and buildings owned by the state located at 155
                  North 1000 West, Salt Lake City, Utah.
                      (2) The division shall:
                      (a) [beginning July 1, 1997,] lease the state fair park to the corporation for a period [of 20
                  years] beginning July 1, 1997, and ending June 30, 2017, at which time the lease may be renewed:
                      (i) at the discretion of the division; and
                      (ii) for any time-period negotiated with the corporation[.];
                      (b) ensure that the lease:
                      (i) defines which party is responsible for repairs and maintenance to the grounds and
                  buildings;
                      (ii) defines any restrictions on the use of the property or buildings, including the


                  construction of any new buildings or facilities at the state fair park;
                      (iii) requires that for each year under the lease the corporation holds a state fair meeting the
                  requirements of Subsection 9-4-1103 (5)(a)(vi); and
                      (iv) provides for the renegotiation or termination of the lease if the corporation:
                      (A) no longer operates as an independent public nonprofit corporation as provided in Title
                  9, Chapter 4, Part 11, Utah State Fair Corporation Act[.]; or
                      (B) engages in any activity inconsistent with Title 9, Chapter 4, Part 11, Utah State Fair
                  Corporation Act; and
                      (c) if the lease described in Subsection (2)(a) is amended or renewed after the effective date
                  of this act and except as provided in Subsection (3), requires the corporation under the lease to:
                      (i) obtain the approval of the State Building Board before demolishing a facility at the state
                  fair park; and
                      (ii) include the approval requirement described in Subsection (2)(c)(i) in any sublease
                  entered into, renewed, or amended after the effective date of this act.
                      (3) (a) The approval required under Subsection (2)(c) does not apply to a facility demolished
                  in accordance with a contract entered into but not amended before the effective date of this act.
                      (b) Notwithstanding Subsection (3)(a), before a facility described in Subsection (3)(a) is
                  demolished, the corporation shall notify the division concerning any demolishing of the facility.
                      (4) The State Building Board shall notify the state historic preservation office of any State
                  Building Board meeting at which consideration will be given to a proposal to demolish facilities at
                  the state fair park.
                      [(3)] (5) (a) Notwithstanding Subsection (2), the division may review and adjust the amount
                  of any payments made by the corporation under the lease every three years beginning July 1, 2000.
                      (b) Notwithstanding Subsection (2)(a), the division may lease the state fair park to the
                  corporation for a period beginning July 1, 1997, and ending no later than June 30, 2039, if the
                  corporation demonstrates to the satisfaction of the division that the extension of the lease period will
                  result in significant capital improvements at the state fair park by a private entity.
                      [(4)] (6) The state shall assume the responsibilities of the corporation under any contract that

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                  is in effect on the day a lease between the division and the corporation terminates if:
                      (a) the contract is for the lease or construction of a building or facility at the state park; and
                      (b) the lease between the division and the corporation is terminated in accordance with [the
                  renegotiation provided for under] Subsection (2)(b)(iv).
                      [(5)] (7) (a) Payments made by the corporation under a lease with the division shall be
                  deposited into the Capital Project Fund.
                      (b) If in accordance with Subsection (3), the payments made by the corporation under a lease
                  with the division are increased from the amount paid on July 1, 1997, the lease payments made by
                  the division shall be dedicated to capital improvements at the state fair park unless, as part of the
                  capital budget, the Legislature directs that the monies be used for other [capitol] capital
                  improvements.
                      (8) (a) A debt or obligation contracted by the corporation is a debt or obligation of the
                  corporation.
                      (b) The state is not liable for and assumes no legal or moral responsibility for any debt or
                  obligation described in Subsection (8)(a), unless the Legislature through statute or an appropriation
                  act specifically:
                      (i) authorizes the corporation to contract for that debt or obligation; and
                      (ii) accepts liability for or assumes responsibility for the debt or obligation.
                      Section 2. Effective date.
                      If approved by two-thirds of all the members elected to each house, this act takes effect upon
                  approval by the governor, or the day following the constitutional time limit of Utah Constitution
                  Article VII, Section 8, without the governor's signature, or in the case of a veto, the date of veto
                  override.
                 

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