Representative Gage Froerer proposes the following substitute bill:


1     
FAIRPARK LEASING AUTHORIZATION REVISIONS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Gage Froerer

5     
Senate Sponsor: Wayne A. Harper

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to leasing of the state fair park.
10     Highlighted Provisions:
11          This bill:
12          ▸     requires the Division of Facilities Construction and Management to obtain:
13               •     the approval of the State Building Board, the Legislative Management
14     Committee, and the Infrastructure and General Government Appropriations
15     Subcommittee before leasing the state fair park to the Utah State Fair
16     Corporation; and
17               •     certain recommendations from the Legislative Management Committee and the
18     Infrastructure and General Government Appropriations Subcommittee before
19     allowing the Utah State Fair Corporation to enter into a sublease for 10 years or
20     more; and
21          ▸     makes technical changes.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          None

26     Utah Code Sections Affected:
27     AMENDS:
28          63A-5-306, as last amended by Laws of Utah 2011, Chapter 370
29          63H-6-103, as last amended by Laws of Utah 2012, Chapters 20 and 347
30     

31     Be it enacted by the Legislature of the state of Utah:
32          Section 1. Section 63A-5-306 is amended to read:
33          63A-5-306. Leasing of state fair park -- Lease -- Terms -- Demolition of facilities
34     -- Limits on debt or obligations.
35          (1) As used in this section:
36          (a) "Corporation" means the Utah State Fair Corporation created in Section 63H-6-103.
37          (b) "Division" means the Division of Facilities Construction and Management.
38          (c) "State fair park" means the property and buildings owned by the state located at 155
39     North 1000 West, Salt Lake City, Utah.
40          (2) The division:
41          (a) may lease the state fair park to the corporation for a period not to exceed 50 years:
42          (i) subject to the division and the corporation satisfying the requirements of
43     [Subsection] Subsections (5)(b)(i) and (ii); and
44          (ii) except that on June 30, 2017, that portion of the state fair park known as the White
45     Ball Field located on the south side of North Temple Street shall revert to the division and not
46     be a part of any continuing lease agreement between the division and the corporation, unless
47     otherwise agreed upon by the division and the corporation prior to June 30, 2017;
48          (b) shall ensure that any lease entered into under Subsection (2)(a):
49          (i) defines which party is responsible for repairs and maintenance to the grounds and
50     buildings;
51          (ii) defines any restrictions on the use of the property or buildings, including the
52     construction of any new buildings or facilities at the state fair park;
53          (iii) requires that for each year under the lease the corporation holds a state fair meeting
54     the requirements of Subsection 63H-6-103(5)(a)(vi); and
55          (iv) provides for the renegotiation or termination of the lease if the corporation:
56          (A) no longer operates as an independent public nonprofit corporation as provided in

57     Title 63H, Chapter 6, Utah State Fair Corporation Act; or
58          (B) engages in any activity inconsistent with Title 63H, Chapter 6, Utah State Fair
59     Corporation Act;
60          (c) may:
61          (i) require that any lease entered into under Subsection (2)(a) grants the division the
62     right to unilaterally terminate the lease at its discretion; and
63          (ii) provide a process to determine compensation, if any, the division shall pay the
64     corporation for termination of the lease under Subsection (2)(c)(i); and
65          (d) if the lease described in Subsection (2)(a) is amended or renewed after the effective
66     date of this act and except as provided in Subsection (3), shall require the corporation under the
67     lease to:
68          (i) provide notice and obtain the approval of the State Building Board, the Legislative
69     Management Committee, and the Infrastructure and General Government Appropriations
70     Subcommittee before demolishing a facility at the state fair park; and
71          (ii) include the approval requirement described in Subsection (2)(d)(i) in any sublease
72     entered into, renewed, or amended after the effective date of this act.
73          (3) (a) The approval required under Subsection (2)(d) does not apply to a facility
74     demolished in accordance with a contract entered into but not amended before the effective
75     date of this act.
76          (b) Notwithstanding Subsection (3)(a), before a facility described in Subsection (3)(a)
77     is demolished, the corporation shall notify the division concerning any demolishing of the
78     facility.
79          (4) The State Building Board shall notify the state historic preservation office of any
80     State Building Board meeting at which consideration will be given to a proposal to demolish
81     facilities at the state fair park.
82          (5) (a) Notwithstanding Subsection (2), the division may review and adjust the amount
83     of any payments made by the corporation under the lease every three years beginning July 1,
84     2000.
85          (b) (i) [The] Subject to Subsection (5)(b)(ii), the division may lease the state fair park
86     to the corporation for a period not to exceed 50 years, if the corporation demonstrates to the
87     satisfaction of the division that the lease period will result in significant capital improvements

88     at the state fair park by a private or public entity.
89          (ii) The division shall obtain the approval of the Legislative Management Committee
90     and the Infrastructure and General Government Appropriations Subcommittee before executing
91     a lease under this Subsection (5)(b).
92          [(ii) The] (iii) Subject to Subsections (5)(iv) and (v), the corporation may enter into a
93     sublease of up to 50 years, [subject to satisfying the requirements of Subsections (2)(d)(i) and
94     (5)(b)(i).] if the corporation obtains the approval of the division and the State Building Board.
95          (iv) Before the division may approve a sublease of 10 years or more under Subsection
96     (5)(iii), the division shall submit a copy of the sublease to, and consider the recommendations
97     of, the Legislative Management Committee and the Infrastructure and General Government
98     Appropriations Subcommittee.
99          (v) The recommendations of the Legislative Management Committee and the
100     Infrastructure and General Government Appropriations Subcommittee may include that the
101     division:
102          (A) approve the sublease;
103          (B) reject the sublease;
104          (C) modify the sublease; or
105          (D) submit the sublease to the Legislature for further consideration.
106          (6) The state shall assume the responsibilities of the corporation under any contract that
107     is in effect on the day a lease between the division and the corporation terminates if:
108          (a) the contract is for the lease or construction of a building or facility at the state park;
109     and
110          (b) the lease between the division and the corporation is terminated in accordance with
111     Subsection (2)(b)(iv).
112          (7) (a) Payments made by the corporation under a lease with the division shall be
113     deposited into the Capital Project Fund.
114          (b) If, in accordance with Subsection (5), the payments made by the corporation under
115     a lease with the division are increased from the amount paid on July 1, 1997, the lease
116     payments made by the division shall be dedicated to capital improvements at the state fair park
117     unless, as part of the capital budget, the Legislature directs that the money be used for other
118     capital improvements.

119          (8) (a) A debt or obligation contracted by the corporation is a debt or obligation of the
120     corporation.
121          (b) The state is not liable for and assumes no legal or moral responsibility for any debt
122     or obligation described in Subsection (8)(a), unless the Legislature through statute or an
123     appropriation act specifically:
124          (i) authorizes the corporation to contract for that debt or obligation; and
125          (ii) accepts liability for or assumes responsibility for the debt or obligation.
126          Section 2. Section 63H-6-103 is amended to read:
127          63H-6-103. Utah State Fair Corporation -- Legal status -- Powers.
128          (1) There is created an independent public nonprofit corporation known as the "Utah
129     State Fair Corporation."
130          (2) The board shall file articles of incorporation for the corporation with the Division
131     of Corporations and Commercial Code.
132          (3) The corporation, subject to this chapter, has all powers and authority permitted
133     nonprofit corporations by law.
134          (4) The corporation shall, subject to approval of the board:
135          (a) have general management, supervision, and control over all activities relating to the
136     state fair and have charge of all state expositions except as otherwise provided by statute;
137          (b) for public entertainment, displays, and exhibits or similar events:
138          (i) provide, sponsor, or arrange the events;
139          (ii) publicize and promote the events; and
140          (iii) secure funds to cover the cost of the exhibits from:
141          (A) private contributions;
142          (B) public appropriations;
143          (C) admission charges; and
144          (D) other lawful means;
145          (c) establish the time, place, and purpose of state expositions; and
146          (d) acquire and designate exposition sites.
147          (5) (a) The corporation shall:
148          (i) use generally accepted accounting principles in accounting for its assets, liabilities,
149     and operations;

150          (ii) seek corporate sponsorships for the state fair park and for individual buildings or
151     facilities within the fair park;
152          (iii) work with county and municipal governments, the Salt Lake Convention and
153     Visitor's Bureau, the Utah Travel Council, and other entities to develop and promote
154     expositions and the use of the state fair park;
155          (iv) develop and maintain a marketing program to promote expositions and the use of
156     the state fair park;
157          (v) in cooperation with the Division of Facilities Construction and Management,
158     maintain the physical appearance and structural integrity of the state fair park and the buildings
159     located at the state fair park;
160          (vi) hold an annual exhibition that:
161          (A) is called the state fair or a similar name;
162          (B) includes expositions of livestock, poultry, agricultural, domestic science,
163     horticultural, floricultural, mineral, and industrial products, manufactured articles, and
164     domestic animals that, in the corporation's opinion will best stimulate agricultural, industrial,
165     artistic, and educational pursuits and the sharing of talents among the people of Utah;
166          (C) includes the award of premiums for the best specimens of the exhibited articles and
167     animals;
168          (D) permits competition by livestock exhibited by citizens of other states and territories
169     of the United States; and
170          (E) is arranged according to plans approved by the board;
171          (vii) fix the conditions of entry to the exposition described in Subsection (5)(a)(vi); and
172          (viii) publish a list of premiums that will be awarded at the exhibition described in
173     Subsection (5)(a)(vi) for the best specimens of exhibited articles and animals.
174          (b) In addition to the state fair to be held in accordance with Subsection (5)(a)(vi), the
175     corporation may hold other exhibitions of livestock, poultry, agricultural, domestic science,
176     horticultural, floricultural, mineral, and industrial products, manufactured articles, and
177     domestic animals that, in its opinion, will best stimulate agricultural, industrial, artistic, and
178     educational pursuits and the sharing of talents among the people of Utah.
179          (6) The corporation may:
180          (a) employ advisers, consultants, and agents, including financial experts and

181     independent legal counsel, and fix their compensation;
182          (b) (i) participate in the state's Risk Management Fund created under Section
183     63A-4-201; or
184          (ii) procure insurance against any loss in connection with its property and other assets,
185     including mortgage loans;
186          (c) receive and accept aid or contributions of money, property, labor, or other things of
187     value from any source, including any grants or appropriations from any department, agency, or
188     instrumentality of the United States or Utah;
189          (d) hold, use, loan, grant, and apply that aid and those contributions to carry out the
190     purposes of the corporation, subject to the conditions, if any, upon which the aid and
191     contributions were made;
192          (e) enter into management agreements with any person or entity for the performance of
193     its functions or powers;
194          (f) establish whatever accounts and procedures as necessary to budget, receive, and
195     disburse, account for, and audit all funds received, appropriated, or generated;
196          (g) subject to the provisions of Section 63A-5-306, enter into agreements for the
197     leasing of any of the facilities at the state fair park, if approved by the board; and
198          (h) sponsor events as approved by the board.
199          (7) (a) Except as provided in Subsection (7)(c), as an independent agency of Utah, the
200     corporation is exempt from:
201          (i) Title 51, Chapter 5, Funds Consolidation Act;
202          (ii) Title 51, Chapter 7, State Money Management Act;
203          (iii) Title 63A, Utah Administrative Services Code;
204          (iv) Title 63G, Chapter 6a, Utah Procurement Code;
205          (v) Title 63J, Chapter 1, Budgetary Procedures Act; and
206          (vi) Title 67, Chapter 19, Utah State Personnel Management Act.
207          (b) The board shall adopt policies parallel to and consistent with:
208          (i) Title 51, Chapter 5, Funds Consolidation Act;
209          (ii) Title 51, Chapter 7, State Money Management Act;
210          (iii) Title 63A, Utah Administrative Services Code;
211          (iv) Title 63G, Chapter 6a, Utah Procurement Code; and

212          (v) Title 63J, Chapter 1, Budgetary Procedures Act.
213          (c) The corporation shall comply with the legislative approval requirements for new
214     facilities established in Subsection 63A-5-104(3).