This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Tue, Mar 1, 2016 at 11:42 AM by lpoole.
1     
STATE FAIR PARK REVISIONS

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Kevin T. Van Tassell

5     
House Sponsor: Mike K. McKell

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to the Utah State Fair Corporation.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     amends the powers and duties of the Utah State Fair Corporation;
14          ▸     modifies the membership of the board of directors of the Utah State Fair
15     Corporation;
16          ▸     allows the board of directors of the Utah State Fair Corporation to create one or
17     more subcommittees;
18          ▸     creates the State Fair Park Advisory Committee;
19          ▸     provides that the Utah State Fair Corporation shall operate and maintain the state
20     fair park;
21          ▸     provides that a person who executes a development agreement with the Utah State
22     Fair Corporation shall pay a tax equivalent payment;
23          ▸     repeals provisions related to the leasing of the state fair park; and
24          ▸     makes technical and conforming changes.
25     Money Appropriated in this Bill:
26          This bill appropriates in fiscal year 2017:
27          ▸     to the Legislature - Senate, as an ongoing appropriation:
28               •     from the General Fund, $15,000;
29          ▸     to the Legislature - House of Representatives, as an ongoing appropriation:
30               •     from the General Fund, $15,000;
31          ▸     to the Legislature - Office of Legislative Research and General Counsel, as an
32     ongoing appropriation:
33               •     from the General Fund, $40,000.
34     Other Special Clauses:
35          None
36     Utah Code Sections Affected:
37     AMENDS:
38          63B-18-302, as enacted by Laws of Utah 2009, Chapter 134
39          63H-6-102, as renumbered and amended by Laws of Utah 2011, Chapter 370
40          63H-6-103, as last amended by Laws of Utah 2012, Chapters 20 and 347
41          63H-6-104, as last amended by Laws of Utah 2014, Chapter 139
42          63H-6-107, as renumbered and amended by Laws of Utah 2011, Chapter 370
43     ENACTS:
44          63H-6-104.5, Utah Code Annotated 1953
45          63H-6-108, Utah Code Annotated 1953
46          63H-6-109, Utah Code Annotated 1953
47     REPEALS:
48          63A-5-306, as last amended by Laws of Utah 2011, Chapter 370
49     

50     Be it enacted by the Legislature of the state of Utah:
51          Section 1. Section 63B-18-302 is amended to read:
52          63B-18-302. Authorizations to dispose of property.
53          [(1) The Legislature intends that:]
54          [(a) the Division of Facilities Construction and Management, acting in coordination
55     with the Utah State Fair Corporation, may negotiate with the Utah Transit Authority for a
56     long-term lease of land, or a license for long-term use of land, to the Utah Transit Authority at
57     the State Fairpark; and]
58          [(b) before entering into a contract with the Utah Transit Authority, the division shall:]
59          [(i) obtain the approval of the State Building Board; and]
60          [(ii) the State Building Board may approve the agreement only if the division
61     demonstrates that the contract terms agree with Section 63A-5-306 and will be a benefit to the
62     state.]
63          [(2)] The Legislature intends that:
64          [(a)] (1) the Department of Workforce Services may, in coordination with the Division
65     of Facilities Construction and Management, sell a Temporary Placement Office in Salt Lake
66     City, Utah, and three vacated buildings in Logan, Utah; and
67          [(b)] (2) sales [shall] be at fair market value.
68          Section 2. Section 63H-6-102 is amended to read:
69          63H-6-102. Definitions.
70          As used in this chapter:
71          (1) "Board" means the board of directors of the corporation.
72          (2) "Business related experience" means at least three years of professional experience
73     in business administration, marketing, advertising, economic development, or a related field.
74          (3) "Capital developments" means the same as that term is defined in Section
75     63A-5-104.
76          (4) "Capital improvements" means the same as that term is defined in Section
77     63A-5-104.
78          [(2)] (5) "Corporation" means the Utah State Fair Corporation created by this chapter.
79          (6) "Division" means the Division of Facilities Construction and Management created
80     in Section 63A-5-201.
81          (7) "Executive director" means the executive director hired by the board in accordance
82     with Section 63H-6-105.
83          [(3)] (8) (a) "State fair park" means the property owned by the state located at:
84          (i) 155 North 1000 West, Salt Lake City, Utah[.], consisting of approximately 50 acres;
85          (ii) 1139 West North Temple, Salt Lake City, Utah, consisting of approximately 10.5
86     acres; and
87          (iii) 1220 West North Temple, Salt Lake City, Utah, consisting of approximately two
88     acres.
89          (b) "State fair park" includes each building and each improvement on the property
90     described in Subsection (8)(a) that is owned by the state.
91          Section 3. Section 63H-6-103 is amended to read:
92          63H-6-103. Utah State Fair Corporation -- Legal status -- Powers.
93          (1) There is created an independent public nonprofit corporation known as the "Utah
94     State Fair Corporation."
95          (2) The board shall file articles of incorporation for the corporation with the Division
96     of Corporations and Commercial Code.
97          (3) The corporation, subject to this chapter, has all powers and authority permitted
98     nonprofit corporations by law.
99          (4) The corporation shall[, subject to approval of the board]:
100          (a) [have general management, supervision, and control over] manage, supervise, and
101     control:
102          (i) all activities relating to the [state fair] annual exhibition described in Subsection
103     (4)(j); and [have charge of]
104          (ii) except as otherwise provided by statute, all state expositions [except as otherwise
105     provided by statute], including setting the time, place, and purpose of any state exposition;
106          (b) for public entertainment, displays, and exhibits or similar events:
107          (i) provide, sponsor, or arrange the events;
108          (ii) publicize and promote the events; and
109          (iii) secure funds to cover the cost of the exhibits from:
110          (A) private contributions;
111          (B) public appropriations;
112          (C) admission charges; and
113          (D) other lawful means;
114          [(c) establish the time, place, and purpose of state expositions; and]
115          [(d)] (c) acquire and designate exposition sites[.];
116          [(5) (a) The corporation shall:]
117          [(i)] (d) use generally accepted accounting principles in accounting for [its] the
118     corporation's assets, liabilities, and operations;
119          [(ii)] (e) seek corporate sponsorships for the state fair park [and] or for individual
120     buildings or facilities within the fair park;
121          [(iii)] (f) work with county and municipal governments, the Salt Lake Convention and
122     Visitor's Bureau, the Utah Travel Council, and other entities to develop and promote
123     expositions and the use of the state fair park;
124          [(iv)] (g) develop and maintain a marketing program to promote expositions and the
125     use of the state fair park;
126          [(v) in cooperation with the Division of Facilities Construction and Management,]
127          (h) in accordance with provisions of this part, operate and maintain the state fair park,
128     including the physical appearance and structural integrity of the state fair park and the
129     buildings located at the state fair park;
130          (i) prepare an economic development plan for the portions of the state fair park
131     described in Subsections 63H-6-102(8)(a)(ii) and (iii);
132          [(vi)] (j) hold an annual exhibition that:
133          [(A)] (i) is called the state fair or a similar name;
134          (ii) promotes and highlights agriculture throughout the state;
135          [(B)] (iii) includes expositions of livestock, poultry, agricultural, domestic science,
136     horticultural, floricultural, mineral[,] and industrial products, manufactured articles, and
137     domestic animals that, in the corporation's opinion will best stimulate agricultural, industrial,
138     artistic, and educational pursuits and the sharing of talents among the people of Utah;
139          [(C)] (iv) includes the award of premiums for the best specimens of the exhibited
140     articles and animals;
141          [(D)] (v) permits competition by livestock exhibited by citizens of other states and
142     territories of the United States; and
143          [(E)] (vi) is arranged according to plans approved by the board;
144          [(vii)] (k) fix the conditions of entry to the [exposition] annual exhibition described in
145     Subsection [(5)(a)(vi)](4)(j); and
146          [(viii)] (l) publish a list of premiums that will be awarded at the annual exhibition
147     described in Subsection [(5)(a)(vi)] (4)(j) for the best specimens of exhibited articles and
148     animals.
149          [(b)] (5) In addition to the [state fair to be held in accordance with Subsection
150     (5)(a)(vi)] annual exhibition described in Subsection (4)(j), the corporation may hold other
151     exhibitions of livestock, poultry, agricultural, domestic science, horticultural, floricultural,
152     mineral[,] and industrial products, manufactured articles, and domestic animals that, in [its] the
153     corporation's opinion, will best stimulate agricultural, industrial, artistic, and educational
154     pursuits and the sharing of talents among the people of Utah.
155          (6) The corporation may:
156          (a) employ advisers, consultants, and agents, including financial experts and
157     independent legal counsel, and fix their compensation;
158          (b) (i) participate in the state's Risk Management Fund created under Section
159     63A-4-201; or
160          (ii) procure insurance against any loss in connection with [its] the corporation's
161     property and other assets, including mortgage loans;
162          (c) receive and accept aid or contributions of money, property, labor, or other things of
163     value from any source, including any grants or appropriations from any department, agency, or
164     instrumentality of the United States or Utah;
165          (d) hold, use, loan, grant, and apply that aid and those contributions to carry out the
166     purposes of the corporation, subject to the conditions, if any, upon which the aid and
167     contributions were made;
168          (e) enter into management agreements with any person or entity for the performance of
169     [its] the corporation's functions or powers;
170          (f) establish whatever accounts and procedures as necessary to budget, receive, and
171     disburse, account for, and audit all funds received, appropriated, or generated;
172          (g) [enter into agreements for the leasing of] subject to Subsection (8), lease any of the
173     facilities at the state fair park[, if approved by the board; and];
174          (h) sponsor events as approved by the board[.]; and
175          (i) enter into one or more agreements to develop the portions of the state fair park
176     described in Subsections 63H-6-102(8)(a) Ŝ→ (i), ←Ŝ (ii) and (iii).
177          (7) (a) Except as provided in Subsection (7)(c), as an independent agency of Utah, the
178     corporation is exempt from:
179          (i) Title 51, Chapter 5, Funds Consolidation Act;
180          (ii) Title 51, Chapter 7, State Money Management Act;
181          (iii) Title 63A, Utah Administrative Services Code;
182          (iv) Title 63G, Chapter 6a, Utah Procurement Code;
183          (v) Title 63J, Chapter 1, Budgetary Procedures Act; and
184          (vi) Title 67, Chapter 19, Utah State Personnel Management Act.
185          (b) The board shall adopt policies parallel to and consistent with:
186          (i) Title 51, Chapter 5, Funds Consolidation Act;
187          (ii) Title 51, Chapter 7, State Money Management Act;
188          (iii) Title 63A, Utah Administrative Services Code;
189          (iv) Title 63G, Chapter 6a, Utah Procurement Code; and
190          (v) Title 63J, Chapter 1, Budgetary Procedures Act.
191          (c) The corporation shall comply with the legislative approval requirements for new
192     facilities established in Subsection 63A-5-104(3).
193          (8) (a) Before the corporation executes a lease described in Subsection (6)(g) with a
194     term of 10 or more years, the corporation shall:
195          (i) submit the proposed lease to the State Building Board for the State Building Board's
196     approval or rejection; and
197          (ii) if the State Building Board approves the proposed lease, submit the proposed lease
198     to the Executive Appropriations Committee for the Executive Appropriation Committee's
199     review and recommendation in accordance with Subsection (8)(b).
200          (b) The Executive Appropriations Committee shall review a proposed lease submitted
201     in accordance with Subsection (8)(a) and recommend to the corporation that the corporation:
202          (i) execute the proposed sublease; or
203          (ii) reject the proposed sublease.
204          (9) In carrying out the corporation's duties under this chapter, the corporation shall
205     cooperate with and, upon request, appear before the State Fair Park Advisory Committee
206     created in Section 63H-6-104.5.
207          Section 4. Section 63H-6-104 is amended to read:
208          63H-6-104. Board of directors -- Membership -- Term -- Quorum -- Vacancies.
209          (1) The corporation is governed by a board of directors.
210          (2) The board is composed of [13] members as follows:
211          (a) the director of the Division of Facilities Construction and Management or the
212     director's designee;
213          (b) the commissioner of agriculture and food or the commissioner's designee; [and]
214          (c) two members, appointed by the president of the Senate, who have business related
215     experience and are not legislators;
216          (d) two members, appointed by the speaker of the House, who have business related
217     experience and are not legislators;
218          [(c) 11] (e) four members appointed by the governor with the consent of the Senate as
219     follows:
220          [(i) two members of the board who are residents of Salt Lake County in which the state
221     fair is held;]
222          [(ii) seven members of the board who are not residents of Salt Lake County and are
223     each a resident of a different county than any other member under this Subsection (2)(c)(ii);
224     and]
225          [(iii)] (i) two members [of the board] who represent agricultural interests[.]; and
226          (ii) two members who have business related experience;
227          (f) one member, appointed by the mayor of Salt Lake City with the consent of the
228     Senate, who Ŝ→ [represents an organization created for the purpose of advocating for and promoting
229     improvements to] is a resident of ←Ŝ the neighborhood located adjacent to the state fair park;
230          (g) a representative of Salt Lake County, if Salt Lake County is party to an executed
231     lease agreement with the corporation; and
232          (h) a representative of the Days of '47 Rodeo, if the Days of '47 Rodeo is party to an
233     executed lease agreement with the corporation.
234          (3) (a) (i) Except as provided in Subsection (3)(a)(ii), [the governor shall appoint board
235     members to serve terms that expire] a board member appointed under Subsection (2)(c), (d),
236     (e), or (f) shall serve a term that expires on the December 1 four years after the year that the
237     board member was appointed.
238          (ii) In making appointments to the board, the president of the Senate, the speaker of the
239     House, the governor, and the mayor of Salt Lake City shall ensure that the terms of
240     approximately 1/4 of the appointed board members expire each year.
241          (b) Except as provided in Subsection (3)(c), appointed board members serve until their
242     successors are appointed and qualified.
243          (c) (i) If an appointed board member is absent from three consecutive board meetings
244     without excuse, that member's appointment is terminated, the position is vacant, and the
245     [governor] individual who appointed the board member shall appoint a replacement.
246          (ii) The president of the Senate, the speaker of the House, the governor, or the mayor of
247     Salt Lake City, as applicable, may remove an appointed member of the board at will.
248          (d) The president of the Senate, the speaker of the House, the governor, or the mayor of
249     Salt Lake City, as appropriate, shall fill any vacancy that occurs on the board for any reason by
250     appointing [a person according to] an individual in accordance with the procedures [of]
251     described in this section for the unexpired term of the vacated member.
252          (4) The governor shall select the board's chair.
253          (5) [Seven] A majority of the members of the board [are] is a quorum for the
254     transaction of business.
255          (6) The board may elect a vice chair and any other board offices.
256          (7) The board may create one or more subcommittees to advise the board on any issue
257     related to the state fair park.
258          Section 5. Section 63H-6-104.5 is enacted to read:
259          63H-6-104.5. State Fair Park Advisory Committee -- Creation -- Duties.
260          (1) To assist the corporation in the execution of the corporation's duties under this
261     chapter, there is created the State Fair Park Advisory Committee consisting of the following six
262     members:
263          (a) three members of the Senate appointed by the president of the Senate, no more than
264     two of whom are from the same political party; and
265          (b) three members from the House of Representatives appointed by the speaker of the
266     House, no more than two of whom are from the same political party.
267          (2) (a) The president of the Senate shall designate a member of the Senate appointed
268     under Subsection (1)(a) as cochair of the advisory committee.
269          (b) The speaker of the House of Representatives shall designate a member of the House
270     of Representatives appointed under Subsection (1)(b) as cochair of the advisory committee.
271          (3) (a) A majority of the members of the advisory committee constitutes a quorum.
272          (b) The action of a majority of a quorum constitutes the action of the advisory
273     committee.
274          (4) The advisory committee shall meet as necessary, as determined by the cochairs of
275     the advisory committee.
276          (5) Salaries and expenses of the members of the advisory committee shall be paid in
277     accordance with Section 36-2-2 and Legislative Joint Rules, Title 5, Chapter 3, Legislator
278     Compensation.
279          (6) The Office of Legislative Research and General Counsel shall provide staff support
280     to the advisory committee.
281          (7) The advisory committee shall consult with and make recommendations to the
282     corporation regarding the corporation's duties under this chapter.
283          (8) A recommendation of the advisory committee is not binding upon the corporation.
284          Section 6. Section 63H-6-107 is amended to read:
285          63H-6-107. Enterprise fund -- Creation -- Revenue -- Uses.
286          (1) (a) There is created an enterprise fund entitled the Utah State Fair Fund.
287          (b) The executive director shall administer the fund under the direction of the board.
288          (2) The fund consists of money generated from the following revenue sources:
289          (a) lease payments from person or entities leasing the state fair park or any other
290     facilities owned by the corporation;
291          (b) [revenues] revenue received from any expositions or other events wholly or
292     partially sponsored by the corporation;
293          (c) aid or contributions of money, property, labor, or other things of value from any
294     source, including any grants or appropriations from any department, agency, or instrumentality
295     of the United States or Utah;
296          (d) appropriations made to the fund by the Legislature; [and]
297          (e) revenue received under an agreement described in Subsection 63H-6-109(2); and
298          [(e)] (f) any other income obtained by the corporation.
299          (3) (a) The fund shall earn interest.
300          (b) All interest earned on fund money shall be deposited into the fund.
301          (4) The executive director may use fund money to operate, maintain, and support the
302     Utah state fair, the state fair park, and other expositions sponsored by the corporation.
303          Section 7. Section 63H-6-108 is enacted to read:
304          63H-6-108. Operation of the state fair park.
305          (1) The corporation shall:
306          (a) operate and maintain the state fair park in accordance with the facility maintenance
307     standards approved by the State Building Board;
308          (b) pay for all costs associated with operating and maintaining the state fair park;
309          (c) obtain approval from the division before the corporation commences capital
310     developments on the state fair park that involve:
311          (i) the construction of new space that costs more than $100,000; or
312          (ii) the construction of a new building that costs more than $1,000,000;
313          (d) for any new construction project on the state fair park that costs $100,000 or more:
314          (i) notify the division before commencing the new construction project; and
315          (ii) coordinate with the division regarding review of design plans and construction
316     management;
317          (e) obtain approval from the division before the corporation makes any alteration or
318     addition to the water system, heating system, plumbing system, air conditioning system, or
319     electrical system;
320          (f) obtain approval from the State Building Board before the corporation demolishes a
321     building or facility on the state fair park;
322          (g) keep the state fair park fully insured to protect against loss or damage by fire,
323     vandalism, or malicious mischief;
324          (h) in accordance with Subsection (3), at the corporation's expense, and for the mutual
325     benefit of the division, maintain general public liability insurance in an amount equal to at least
326     $1,000,000 through one or more companies that are:
327          (i) licensed to do business in the state;
328          (ii) selected by the corporation; and
329          (iii) approved by the division and the Division of Risk Management;
330          (i) ensure that the division is an additional insured with primary coverage on each
331     insurance policy that the corporation obtains in accordance with this section;
332          (j) give the division notice at least 30 days before the day on which the corporation
333     cancels any insurance policy that the corporation obtains in accordance with this section; and
334          (k) if any lien is recorded or filed against the state fair park as a result of an act or
335     omission of the corporation, cause the lien to be satisfied or cancelled within 10 days after the
336     day on which the corporation receives notice of the lien.
337          (2) The State Building Board shall notify the State Historic Preservation Office of any
338     State Building Board meeting at which the State Building Board will consider approval to
339     demolish a facility on the state fair park.
340          (3) The general public liability insurance described in Subsection (1)(h) shall:
341          (a) insure against any claim for personal injury, death, or property damage that occurs
342     at the state fair park; and
343          (b) be a blanket policy that covers all activities of the corporation.
344          (4) The division shall administer any capital improvements on the state fair park that
345     cost more than $100,000.
346          (5) Upon 24 hours notice to the corporation, the division may enter the state fair park
347     to inspect the state fair park and make any repairs that the division determines necessary.
348          (6) If the corporation no longer operates as an independent public nonprofit corporation
349     as described in this chapter, the state shall assume the responsibilities of the corporation under
350     any contract that is:
351          (a) in effect as of the day on which the status of the corporation changes; and
352          (b) for the lease, construction, or development of a building or facility on the state fair
353     park.
354          (7) (a) A debt or obligation contracted by the corporation is a debt or obligation of the
355     corporation.
356          (b) The state is not liable and assumes no responsibility for any debt or obligation
357     described in Subsection (7)(a), unless the Legislature expressly:
358          (i) authorizes the corporation to contract for the debt or obligation; and
359          (ii) accepts liability or assumes responsibility for the debt or obligation.
360          (8) The provisions of this section apply notwithstanding any contrary provision in Title
361     63A, Chapter 5, State Building Board - Division of Facilities Construction and Management.
362          Section 8. Section 63H-6-109 is enacted to read:
363          63H-6-109. Tax -- Exemption -- Tax equivalent payment.
364          (1) The possession or beneficial use of property within the state fair park is exempt
365     from taxation under Title 59, Chapter 4, Privilege Tax.
366          (2) (a) Any agreement between the corporation and a person to develop property within
367     the state fair park shall provide that the person shall, in accordance with Title 59, Chapter 3,
368     Tax Equivalent Property Act, make a tax equivalent payment as defined in Section 59-3-102 to
369     the corporation each year.
370          (b) The corporation shall deposit all revenue collected under Subsection (2)(a) into the
371     Utah State Fair Fund created in Section 63H-6-107.
372          Section 9. Repealer.
373          This bill repeals:
374          Section 63A-5-306, Leasing of state fair park -- Lease -- Terms -- Demolition of
375     facilities -- Limits on debt or obligations.
376          Section 10. Appropriation.
377          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, for
378     the fiscal year beginning July 1, 2016, and ending June 30, 2017, the following sums of money
379     are appropriated from resources not otherwise appropriated, or reduced from amounts
380     previously appropriated, out of the funds or amounts indicated. These sums of money are in
381     addition to amounts previously appropriated for fiscal year 2017.
382          To Legislature - Senate
383               From General Fund
$15,000

384               Schedule of Programs:
385                    Administration                         $15,000
386          To Legislature - House of Representatives
387               From General Fund
$15,000

388               Schedule of Programs:
389                    Administration                         $15,000
390          To Legislature - Office of Legislative Research and General Counsel
391               From General Fund
$40,000

392               Schedule of Programs:
393                    Administration                         $40,000




Legislative Review Note
Office of Legislative Research and General Counsel