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First Substitute H.B. 277

Senator Lyle W. Hillyard proposes to substitute the following bill:


             1     
UTAH STATE FAIRPARK LEASE

             2     
1999 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Bill Wright

             5      AN ACT RELATING TO STATE AFFAIRS; CLARIFYING THE LEASE; PROVIDING FOR
             6      EXTENSION OF TERM OF LEASE; MAKING TECHNICAL CHANGES; AND PROVIDING
             7      AN EFFECTIVE DATE.
             8      This act affects sections of Utah Code Annotated 1953 as follows:
             9      AMENDS:
             10          63A-5-306, as last amended by Chapter 214, Laws of Utah 1997
             11      Be it enacted by the Legislature of the state of Utah:
             12          Section 1. Section 63A-5-306 is amended to read:
             13           63A-5-306. Leasing of State Fair Park -- Lease -- Terms.
             14          (1) As used in this section:
             15          (a) "Corporation" means the Utah State Fair Corporation created in Section 9-4-1103 .
             16          (b) "Division" means the Division of Facilities Construction and Management.
             17          (c) "State fair park" means the property and buildings owned by the state located at 155
             18      North 1000 West, Salt Lake City, Utah.
             19          (2) The division shall:
             20          (a) [beginning July 1, 1997,] lease the state fair park to the corporation for a period [of 20
             21      years] beginning July 1, 1997, and ending June 30, 2017, at which time the lease may be renewed:
             22          (i) at the discretion of the division; and
             23          (ii) for any time-period negotiated with the corporation[.];
             24          (b) ensure that the lease:
             25          (i) defines which party is responsible for repairs and maintenance to the grounds and


             26      buildings;
             27          (ii) defines any restrictions on the use of the property or buildings, including the
             28      construction of any new buildings or facilities at the state fair park;
             29          (iii) requires that for each year under the lease the corporation holds a state fair meeting
             30      the requirements of Subsection 9-4-1103 (5)(a)(vi); and
             31          (iv) provides for the renegotiation or termination of the lease if the corporation:
             32          (A) no longer operates as an independent public nonprofit corporation as provided in Title
             33      9, Chapter 4, Part 11, Utah State Fair Corporation Act[.]; or
             34          (B) engages in any activity inconsistent with Title 9, Chapter 4, Part 11, Utah State Fair
             35      Corporation Act; and
             36          (c) if the lease described in Subsection (2)(a) is amended or renewed after the effective
             37      date of this act and except as provided in Subsection (3), require the corporation under the lease
             38      to:
             39          (i) obtain the approval of the State Building Board before demolishing a facility at the state
             40      fair park; and
             41          (ii) include the approval requirement described in Subsection (2)(c)(i) in any sublease
             42      entered into, renewed, or amended after the effective date of this act.
             43          (3) (a) The approval required under Subsection (2)(c)(ii) does not apply to a facility
             44      demolished in accordance with a contract entered into but not amended before the effective date
             45      of this act.
             46          (b) Notwithstanding Subsection (3)(a), before a facility described in Subsection (3)(a) is
             47      demolished, the corporation shall notify the division concerning any demolishing of the facility.
             48          (4) The State Building Board shall notify the state historic preservation office of any State
             49      Building Board meeting at which consideration will be given to a proposal to demolishing facilities
             50      at the fair park.
             51          [(3)] (5) (a) Notwithstanding Subsection (2), the division may review and adjust the
             52      amount of any payments made by the corporation under the lease every three years beginning July
             53      1, 2000.
             54          (b) Notwithstanding Subsection (2)(a), the division may lease the state fair park to the
             55      corporation for a period beginning July 1, 1997, and ending no later than June 30, 2039, if the
             56      corporation demonstrates to the satisfaction of the division that the extension of the lease period


             57      will result in significant capital improvements at the state fair park by a private entity.
             58          [(4)] (6) The state shall assume the responsibilities of the corporation under any contract
             59      that is in effect on the day a lease between the division and the corporation terminates if:
             60          (a) the contract is for the lease or construction of a building or facility at the state park; and
             61          (b) the lease between the division and the corporation is terminated in accordance with [the
             62      renegotiation provided for under] Subsection (2)(b)(iv).
             63          [(5)] (7) (a) Payments made by the corporation under a lease with the division shall be
             64      deposited into the Capital Project Fund.
             65          (b) If in accordance with Subsection (3), the payments made by the corporation under a
             66      lease with the division are increased from the amount paid on July 1, 1997, the lease payments
             67      made by the division shall be dedicated to capital improvements at the state fair park unless, as part
             68      of the capital budget, the Legislature directs that the monies be used for other [capitol] capital
             69      improvements.
             70          (8) (a) A debt or obligation contracted by the corporation is a debt or obligation of the
             71      corporation.
             72          (b) The state is not liable for and assumes no legal or moral responsibility for any debt or
             73      obligation described in Subsection (8)(a), unless the Legislature through statute or an appropriation
             74      act specifically:
             75          (i) authorizes the corporation to contract for that debt or obligation; and
             76          (ii) accepts liability for or assumes responsibility for the debt or obligation.
             77          Section 2. Effective date.
             78          If approved by two-thirds of all the members elected to each house, this act takes effect
             79      upon approval by the governor, or the day following the constitutional time limit of Utah
             80      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the
             81      date of veto override.


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