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 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          ▸     authorizes the Utah State Fair Corporation to issue revenue bonds;
24          ▸     repeals provisions related to the leasing of the state fair park; and
25          ▸     makes technical and conforming changes.
26     Money Appropriated in this Bill:
27          This bill appropriates in fiscal year 2017:
28          ▸     to the Legislature - Senate, as an ongoing appropriation:
29               •     from the General Fund, $10,000;
30          ▸     to the Legislature - House of Representatives, as an ongoing appropriation:
31               •     from the General Fund, $10,000;
32          ▸     to the Legislature - Office of Legislative Research and General Counsel, as an
33     ongoing appropriation:
34               •     from the General Fund, $35,000.
35     Other Special Clauses:
36          None
37     Utah Code Sections Affected:
38     AMENDS:
39          63B-18-302, as enacted by Laws of Utah 2009, Chapter 134
40          63H-6-101, as renumbered and amended by Laws of Utah 2011, Chapter 370
41          63H-6-102, as renumbered and amended by Laws of Utah 2011, Chapter 370
42          63H-6-103, as last amended by Laws of Utah 2012, Chapters 20 and 347
43          63H-6-104, as last amended by Laws of Utah 2014, Chapter 139
44          63H-6-107, as renumbered and amended by Laws of Utah 2011, Chapter 370
45     ENACTS:
46          63H-6-104.5, Utah Code Annotated 1953
47          63H-6-108, Utah Code Annotated 1953
48          63H-6-109, Utah Code Annotated 1953
49          63H-6-201, Utah Code Annotated 1953
50          63H-6-202, Utah Code Annotated 1953
51          63H-6-203, Utah Code Annotated 1953
52          63H-6-204, Utah Code Annotated 1953
53          63H-6-205, Utah Code Annotated 1953
54     REPEALS:
55          63A-5-306, as last amended by Laws of Utah 2011, Chapter 370
56     

57     Be it enacted by the Legislature of the state of Utah:
58          Section 1. Section 63B-18-302 is amended to read:
59          63B-18-302. Authorizations to dispose of property.
60          [(1) The Legislature intends that:]
61          [(a) the Division of Facilities Construction and Management, acting in coordination
62     with the Utah State Fair Corporation, may negotiate with the Utah Transit Authority for a
63     long-term lease of land, or a license for long-term use of land, to the Utah Transit Authority at
64     the State Fairpark; and]
65          [(b) before entering into a contract with the Utah Transit Authority, the division shall:]
66          [(i) obtain the approval of the State Building Board; and]
67          [(ii) the State Building Board may approve the agreement only if the division
68     demonstrates that the contract terms agree with Section 63A-5-306 and will be a benefit to the
69     state.]
70          [(2)] The Legislature intends that:
71          [(a)] (1) the Department of Workforce Services may, in coordination with the Division
72     of Facilities Construction and Management, sell a Temporary Placement Office in Salt Lake
73     City, Utah, and three vacated buildings in Logan, Utah; and
74          [(b)] (2) sales [shall] be at fair market value.
75          Section 2. Section 63H-6-101 is amended to read:
76     
Part 1. Creation and Authority of the Utah State Fair Corporation

77          63H-6-101. Title.
78          (1) This chapter is known as the "Utah State Fair Corporation Act."
79          (2) This part is known as "Creation and Authority of the Utah State Fair Corporation."
80          Section 3. Section 63H-6-102 is amended to read:
81          63H-6-102. Definitions.
82          As used in this chapter:
83          (1) "Board" means the board of directors of the corporation.
84          (2) "Business related experience" means at least three years of professional experience
85     in business administration, marketing, advertising, economic development, or a related field.
86          (3) "Capital developments" means the same as that term is defined in Section
87     63A-5-104.
88          (4) "Capital improvements" means the same as that term is defined in Section
89     63A-5-104.
90          [(2)] (5) "Corporation" means the Utah State Fair Corporation created by this chapter.
91          (6) "Corporation bond" means a bond issued by the corporation in accordance with Part
92     2, Bonding Authority.
93          (7) "Division" means the Division of Facilities Construction and Management created
94     in Section 63A-5-201.
95          (8) "Executive director" means the executive director hired by the board in accordance
96     with Section 63H-6-105.
97          [(3)] (9) (a) "State fair park" means the property owned by the state located at:
98          (i) 155 North 1000 West, Salt Lake City, Utah[.], consisting of approximately 50 acres;
99          (ii) 1139 West North Temple, Salt Lake City, Utah, consisting of approximately 10.5
100     acres; and
101          (iii) 1220 West North Temple, Salt Lake City, Utah, consisting of approximately two
102     acres.
103          (b) "State fair park" includes each building and each improvement on the property
104     described in Subsection (8)(a) that is owned by the state.
105          Section 4. Section 63H-6-103 is amended to read:
106          63H-6-103. Utah State Fair Corporation -- Legal status -- Powers.
107          (1) There is created an independent public nonprofit corporation known as the "Utah
108     State Fair Corporation."
109          (2) The board shall file articles of incorporation for the corporation with the Division
110     of Corporations and Commercial Code.
111          (3) The corporation, subject to this chapter, has all powers and authority permitted
112     nonprofit corporations by law.
113          (4) The corporation shall[, subject to approval of the board]:
114          (a) [have general management, supervision, and control over] manage, supervise, and
115     control:
116          (i) all activities relating to the [state fair] annual exhibition described in Subsection
117     (4)(j); and [have charge of]
118          (ii) except as otherwise provided by statute, all state expositions [except as otherwise
119     provided by statute], including setting the time, place, and purpose of any state exposition;
120          (b) for public entertainment, displays, and exhibits or similar events:
121          (i) provide, sponsor, or arrange the events;
122          (ii) publicize and promote the events; and
123          (iii) secure funds to cover the cost of the exhibits from:
124          (A) private contributions;
125          (B) public appropriations;
126          (C) admission charges; and
127          (D) other lawful means;
128          [(c) establish the time, place, and purpose of state expositions; and]
129          [(d)] (c) acquire and designate exposition sites[.];
130          [(5) (a) The corporation shall:]
131          [(i)] (d) use generally accepted accounting principles in accounting for [its] the
132     corporation's assets, liabilities, and operations;
133          [(ii)] (e) seek corporate sponsorships for the state fair park [and] or for individual
134     buildings or facilities within the fair park;
135          [(iii)] (f) work with county and municipal governments, the Salt Lake Convention and
136     Visitor's Bureau, the Utah Travel Council, and other entities to develop and promote
137     expositions and the use of the state fair park;
138          [(iv)] (g) develop and maintain a marketing program to promote expositions and the
139     use of the state fair park;
140          [(v) in cooperation with the Division of Facilities Construction and Management,]
141          (h) in accordance with provisions of this part, operate and maintain the state fair park,
142     including the physical appearance and structural integrity of the state fair park and the
143     buildings located at the state fair park;
144          (i) prepare an economic development plan for the state fair park;
145          [(vi)] (j) hold an annual exhibition that:
146          [(A)] (i) is called the state fair or a similar name;
147          (ii) promotes and highlights agriculture throughout the state;
148          [(B)] (iii) includes expositions of livestock, poultry, agricultural, domestic science,
149     horticultural, floricultural, mineral[,] and industrial products, manufactured articles, and
150     domestic animals that, in the corporation's opinion will best stimulate agricultural, industrial,
151     artistic, and educational pursuits and the sharing of talents among the people of Utah;
152          [(C)] (iv) includes the award of premiums for the best specimens of the exhibited
153     articles and animals;
154          [(D)] (v) permits competition by livestock exhibited by citizens of other states and
155     territories of the United States; and
156          [(E)] (vi) is arranged according to plans approved by the board;
157          [(vii)] (k) fix the conditions of entry to the [exposition] annual exhibition described in
158     Subsection [(5)(a)(vi)](4)(j); and
159          [(viii)] (l) publish a list of premiums that will be awarded at the annual exhibition
160     described in Subsection [(5)(a)(vi)] (4)(j) for the best specimens of exhibited articles and
161     animals.
162          [(b)] (5) In addition to the [state fair to be held in accordance with Subsection
163     (5)(a)(vi)] annual exhibition described in Subsection (4)(j), the corporation may hold other
164     exhibitions of livestock, poultry, agricultural, domestic science, horticultural, floricultural,
165     mineral[,] and industrial products, manufactured articles, and domestic animals that, in [its] the
166     corporation's opinion, will best stimulate agricultural, industrial, artistic, and educational
167     pursuits and the sharing of talents among the people of Utah.
168          (6) The corporation may:
169          (a) employ advisers, consultants, and agents, including financial experts and
170     independent legal counsel, and fix their compensation;
171          (b) (i) participate in the state's Risk Management Fund created under Section
172     63A-4-201; or
173          (ii) procure insurance against any loss in connection with [its] the corporation's
174     property and other assets, including mortgage loans;
175          (c) receive and accept aid or contributions of money, property, labor, or other things of
176     value from any source, including any grants or appropriations from any department, agency, or
177     instrumentality of the United States or Utah;
178          (d) hold, use, loan, grant, and apply that aid and those contributions to carry out the
179     purposes of the corporation, subject to the conditions, if any, upon which the aid and
180     contributions were made;
181          (e) enter into management agreements with any person or entity for the performance of
182     [its] the corporation's functions or powers;
183          (f) establish whatever accounts and procedures as necessary to budget, receive, and
184     disburse, account for, and audit all funds received, appropriated, or generated;
185          (g) [enter into agreements for the leasing of] subject to Subsection (8), lease any of the
186     facilities at the state fair park[, if approved by the board; and];
187          (h) sponsor events as approved by the board[.]; and
188          (i) enter into one or more agreements to develop the state fair park.
189          (7) (a) Except as provided in Subsection (7)(c), as an independent agency of Utah, the
190     corporation is exempt from:
191          (i) Title 51, Chapter 5, Funds Consolidation Act;
192          (ii) Title 51, Chapter 7, State Money Management Act;
193          (iii) Title 63A, Utah Administrative Services Code;
194          (iv) Title 63G, Chapter 6a, Utah Procurement Code;
195          (v) Title 63J, Chapter 1, Budgetary Procedures Act; and
196          (vi) Title 67, Chapter 19, Utah State Personnel Management Act.
197          (b) The board shall adopt policies parallel to and consistent with:
198          (i) Title 51, Chapter 5, Funds Consolidation Act;
199          (ii) Title 51, Chapter 7, State Money Management Act;
200          (iii) Title 63A, Utah Administrative Services Code;
201          (iv) Title 63G, Chapter 6a, Utah Procurement Code; and
202          (v) Title 63J, Chapter 1, Budgetary Procedures Act.
203          (c) The corporation shall comply with the legislative approval requirements for new
204     facilities established in Subsection 63A-5-104(3).
205          (8) (a) Before the corporation executes a lease described in Subsection (6)(g) with a
206     term of 10 or more years, the corporation shall:
207          (i) submit the proposed lease to the State Building Board for the State Building Board's
208     approval or rejection; and
209          (ii) if the State Building Board approves the proposed lease, submit the proposed lease
210     to the Executive Appropriations Committee for the Executive Appropriation Committee's
211     review and recommendation in accordance with Subsection (8)(b).
212          (b) The Executive Appropriations Committee shall review a proposed lease submitted
213     in accordance with Subsection (8)(a) and recommend to the corporation that the corporation:
214          (i) execute the proposed sublease; or
215          (ii) reject the proposed sublease.
216          Section 5. Section 63H-6-104 is amended to read:
217          63H-6-104. Board of directors -- Membership -- Term -- Quorum -- Vacancies --
218     Duties.
219          (1) The corporation is governed by a board of directors.
220          (2) The board is composed of [13] members as follows:
221          (a) the director of the Division of Facilities Construction and Management or the
222     director's designee;
223          (b) the commissioner of agriculture and food or the commissioner's designee; [and]
224          (c) two members, appointed by the president of the Senate, who have business related
225     experience and are not legislators;
226          (d) two members, appointed by the speaker of the House, who have business related
227     experience and are not legislators;
228          [(c) 11] (e) four members appointed by the governor with the consent of the Senate as
229     follows:
230          [(i) two members of the board who are residents of Salt Lake County in which the state
231     fair is held;]
232          [(ii) seven members of the board who are not residents of Salt Lake County and are
233     each a resident of a different county than any other member under this Subsection (2)(c)(ii);
234     and]
235          [(iii)] (i) two members [of the board] who represent agricultural interests[.]; and
236          (ii) two members who have business related experience;
237          (f) one member, appointed by the mayor of Salt Lake City with the consent of the
238     Senate, who is a resident of the neighborhood located adjacent to the state fair park;
239          (g) a representative of Salt Lake County, if Salt Lake County is party to an executed
240     lease agreement with the corporation; and
241          (h) a representative of the Days of '47 Rodeo, if the Days of '47 Rodeo is party to an
242     executed lease agreement with the corporation.
243          (3) (a) (i) Except as provided in Subsection (3)(a)(ii), [the governor shall appoint board
244     members to serve terms that expire] a board member appointed under Subsection (2)(c), (d),
245     (e), or (f) shall serve a term that expires on the December 1 four years after the year that the
246     board member was appointed.
247          (ii) In making appointments to the board, the president of the Senate, the speaker of the
248     House, the governor, and the mayor of Salt Lake City shall ensure that the terms of
249     approximately 1/4 of the appointed board members expire each year.
250          (b) Except as provided in Subsection (3)(c), appointed board members serve until their
251     successors are appointed and qualified.
252          (c) (i) If an appointed board member is absent from three consecutive board meetings
253     without excuse, that member's appointment is terminated, the position is vacant, and the
254     [governor] individual who appointed the board member shall appoint a replacement.
255          (ii) The president of the Senate, the speaker of the House, the governor, or the mayor of
256     Salt Lake City, as applicable, may remove an appointed member of the board at will.
257          (d) The president of the Senate, the speaker of the House, the governor, or the mayor of
258     Salt Lake City, as appropriate, shall fill any vacancy that occurs on the board for any reason by
259     appointing [a person according to] an individual in accordance with the procedures [of]
260     described in this section for the unexpired term of the vacated member.
261          (4) The governor shall select the board's chair.
262          (5) [Seven] A majority of the members of the board [are] is a quorum for the
263     transaction of business.
264          (6) The board may elect a vice chair and any other board offices.
265          (7) The board may create one or more subcommittees to advise the board on any issue
266     related to the state fair park.
267          (8) In carrying out the board's duties under this chapter, the board shall cooperate with
268     and, upon request, appear before the State Fair Park Committee.
269          (9) No later than November 30 of each year, the board shall provide the following to
270     the State Fair Park Committee:
271          (a) a report on the general state of the financial and business affairs of the corporation;
272          (b) a report on that year's annual exhibition described in Subsection 63H-6-103(4)(j),
273     including the exhibition's attendance, operations, and revenue;
274          (c) any appropriation request that the board plans to submit to the Legislature; and
275          (d) any other report that the State Fair Park Committee requests.
276          Section 6. Section 63H-6-104.5 is enacted to read:
277          63H-6-104.5. State Fair Park Committee -- Creation -- Duties.
278          (1) To assist the board in the execution of the board's duties under this chapter, there is
279     created the State Fair Park Committee consisting of the following six members:
280          (a) three members of the Senate appointed by the president of the Senate, no more than
281     two of whom are from the same political party; and
282          (b) three members from the House of Representatives appointed by the speaker of the
283     House, no more than two of whom are from the same political party.
284          (2) (a) The president of the Senate shall designate a member of the Senate appointed
285     under Subsection (1)(a) as cochair of the committee.
286          (b) The speaker of the House of Representatives shall designate a member of the House
287     of Representatives appointed under Subsection (1)(b) as cochair of the committee.
288          (3) (a) A majority of the members of the advisory committee constitutes a quorum.
289          (b) The action of a majority of a quorum constitutes the action of the committee.
290          (4) The committee shall meet as necessary, as determined by the cochairs of the
291     committee.
292          (5) Salaries and expenses of the members of the committee shall be paid in accordance
293     with Section 36-2-2 and Legislative Joint Rules, Title 5, Chapter 3, Legislator Compensation.
294          (6) The Office of Legislative Research and General Counsel shall provide staff support
295     to the committee.
296          (7) The committee may consult with and make recommendations to the board
297     regarding the board's duties under this chapter.
298          (8) A recommendation of the committee is not binding upon the board.
299          Section 7. Section 63H-6-107 is amended to read:
300          63H-6-107. Enterprise fund -- Creation -- Revenue -- Uses.
301          (1) (a) There is created an enterprise fund entitled the Utah State Fair Fund.
302          (b) The executive director shall administer the fund under the direction of the board.
303          (2) The fund consists of money generated from the following revenue sources:
304          (a) lease payments from person or entities leasing the state fair park or any other
305     facilities owned by the corporation;
306          (b) [revenues] revenue received from any expositions or other events wholly or
307     partially sponsored by the corporation;
308          (c) aid or contributions of money, property, labor, or other things of value from any
309     source, including any grants or appropriations from any department, agency, or instrumentality
310     of the United States or Utah;
311          (d) appropriations made to the fund by the Legislature; [and]
312          (e) revenue received under an agreement described in Subsection 63H-6-109(2); and
313          [(e)] (f) any other income obtained by the corporation.
314          (3) (a) The fund shall earn interest.
315          (b) All interest earned on fund money shall be deposited into the fund.
316          (4) The executive director may use fund money to operate, maintain, and support the
317     Utah state fair, the state fair park, and other expositions sponsored by the corporation.
318          Section 8. Section 63H-6-108 is enacted to read:
319          63H-6-108. Operation of the state fair park.
320          (1) The corporation shall:
321          (a) operate and maintain the state fair park in accordance with the facility maintenance
322     standards approved by the State Building Board;
323          (b) pay for all costs associated with operating and maintaining the state fair park;
324          (c) obtain approval from the division before the corporation commences capital
325     developments on the state fair park that involve:
326          (i) a construction project that costs more than $250,000; or
327          (ii) the construction of a new building that costs more than $1,000,000;
328          (d) obtain a building permit from the division before commencing an activity that
329     requires a building permit;
330          (e) ensure that:
331          (i) any design plan related to the state fair park satisfies any applicable design standards
332     established by the division or the State Building Board; and
333          (ii) construction performed on the state fair park satisfies any applicable construction
334     standards established by the division or the State Building Board;
335          (f) for any new construction project on the state fair park that costs $250,000 or more:
336          (i) notify the division before commencing the new construction project; and
337          (ii) coordinate with the division regarding review of design plans and construction
338     management;
339          (g) obtain approval from the division before the corporation makes any alteration or
340     addition to the water system, heating system, plumbing system, air conditioning system, or
341     electrical system;
342          (h) obtain approval from the State Building Board before the corporation demolishes a
343     building or facility on the state fair park;
344          (i) keep the state fair park fully insured to protect against loss or damage by fire,
345     vandalism, or malicious mischief;
346          (j) in accordance with Subsection (3), at the corporation's expense, and for the mutual
347     benefit of the division, maintain general public liability insurance in an amount equal to at least
348     $1,000,000 through one or more companies that are:
349          (i) licensed to do business in the state;
350          (ii) selected by the corporation; and
351          (iii) approved by the division and the Division of Risk Management;
352          (k) ensure that the division is an additional insured with primary coverage on each
353     insurance policy that the corporation obtains in accordance with this section;
354          (l) give the division notice at least 30 days before the day on which the corporation
355     cancels any insurance policy that the corporation obtains in accordance with this section; and
356          (m) if any lien is recorded or filed against the state fair park as a result of an act or
357     omission of the corporation, cause the lien to be satisfied or cancelled within 10 days after the
358     day on which the corporation receives notice of the lien.
359          (2) The State Building Board shall notify the State Historic Preservation Office of any
360     State Building Board meeting at which the State Building Board will consider approval to
361     demolish a facility on the state fair park.
362          (3) The general public liability insurance described in Subsection (1)(j) shall:
363          (a) insure against any claim for personal injury, death, or property damage that occurs
364     at the state fair park; and
365          (b) be a blanket policy that covers all activities of the corporation.
366          (4) The division shall administer any capital improvements on the state fair park that
367     cost more than $250,000.
368          (5) Upon 24 hours notice to the corporation, the division may enter the state fair park
369     to inspect the state fair park and make any repairs that the division determines necessary.
370          (6) If the corporation no longer operates as an independent public nonprofit corporation
371     as described in this chapter, the state shall assume the responsibilities of the corporation under
372     any contract that is:
373          (a) in effect as of the day on which the status of the corporation changes; and
374          (b) for the lease, construction, or development of a building or facility on the state fair
375     park.
376          (7) (a) A debt or obligation contracted by the corporation is a debt or obligation of the
377     corporation.
378          (b) The state is not liable and assumes no responsibility for any debt or obligation
379     described in Subsection (7)(a), unless the Legislature expressly:
380          (i) authorizes the corporation to contract for the debt or obligation; and
381          (ii) accepts liability or assumes responsibility for the debt or obligation.
382          (8) The provisions of this section apply notwithstanding any contrary provision in Title
383     63A, Chapter 5, State Building Board - Division of Facilities Construction and Management.
384          Section 9. Section 63H-6-109 is enacted to read:
385          63H-6-109. Tax -- Exemption -- Tax equivalent payment.
386          (1) The possession or beneficial use of property within the state fair park is exempt
387     from taxation under Title 59, Chapter 4, Privilege Tax.
388          (2) (a) Any agreement between the corporation and a person to develop property within
389     the state fair park shall provide that the person shall, in accordance with Title 59, Chapter 3,
390     Tax Equivalent Property Act, make a tax equivalent payment as defined in Section 59-3-102 to
391     the corporation each year.
392          (b) The corporation shall deposit all revenue collected under Subsection (2)(a) into the
393     Utah State Fair Fund created in Section 63H-6-107.
394          Section 10. Section 63H-6-201 is enacted to read:
395     
Part 2. Bonding Authority

396          63H-6-201. Title.
397          This part is known as "Bonding Authority."
398          Section 11. Section 63H-6-202 is enacted to read:
399          63H-6-202. Resolution authorizing issuance of corporation bond -- Presentation to
400     Executive Appropriations Committee -- Characteristics of bond.
401          (1) (a) The corporation may:
402          (i) issue bonds on which the principal and interest are payable:
403          (A) exclusively from the income, purchase or lease payments, and revenues of the
404     corporation; or
405          (B) from the corporation's revenues generally; or
406          (ii) issue refunding bonds for the purpose of paying or retiring bonds previously issued
407     by the corporation.
408          (b) The corporation may not issue a corporation bond, unless before the issuance of the
409     bond:
410          (i) (A) the corporation presents to the Executive Appropriations Committee a proposed
411     resolution authorizing the issuance of the corporation bond; and
412          (B) the Executive Appropriations Committee makes a recommendation in accordance
413     with Subsection (1)(c); and
414          (ii) the board adopts a resolution authorizing the issuance of the corporation bond.
415          (c) Following a presentation described in Subsection (1)(b), the Executive
416     Appropriations Committee shall vote whether the Executive Appropriations Committee
417     recommends the corporation adopt, amend, or reject the proposed resolution authorizing the
418     issuance of the corporation bond.
419          (2) (a) If provided in a resolution authorizing the issuance of a corporation bond or in
420     the trust indenture under which the corporation bond is issued, a corporation bond may be:
421          (i) issued in one or more series; and
422          (ii) sold:
423          (A) at a public or private sale; and
424          (B) in the manner provided in the resolution or indenture.
425          (b) A corporation bond shall:
426          (i) bear the date provided in the resolution authorizing the issuance of the corporation
427     bond or the trust indenture under which the corporation bond is issued;
428          (ii) be payable at the time provided in the resolution authorizing the issuance of the
429     corporation bond or the trust indenture under which the corporation bond is issued;
430          (iii) bear interest at the rate provided in the resolution authorizing the issuance of the
431     corporation bond or the trust indenture under which the corporation bond is issued;
432          (iv) be in the denomination and in the form provided in the resolution authorizing the
433     issuance of the corporation bond or the trust indenture under which the corporation bond is
434     issued;
435          (v) carry the conversion or registration privileges provided in the resolution authorizing
436     the issuance of the corporation bond or the trust indenture under which the corporation bond is
437     issued;
438          (vi) have the rank or priority described in the resolution authorizing the issuance of the
439     corporation bond or the trust indenture under which the corporation bond is issued;
440          (vii) be executed in the manner described in the resolution authorizing the issuance of
441     the corporation bond or the trust indenture under which the corporation bond is issued;
442          (viii) be subject to the terms of redemption or tender, with or without premium, as
443     described in the resolution authorizing the issuance of the corporation bond or the trust
444     indenture under which the corporation bond is issued;
445          (ix) be payable in the medium of payment and at the place described in the resolution
446     authorizing the issuance of the corporation bond or the trust indenture under which the
447     corporation bond is issued; and
448          (x) have any other characteristics described in the resolution authorizing the issuance
449     of the corporation bond or the trust indenture under which the corporation bond is issued.
450          Section 12. Section 63H-6-203 is enacted to read:
451          63H-6-203. Sources from which a corporation bond may be made payable --
452     Corporation powers regarding corporation bond.
453          (1) The principal and interest on a corporation bond may be made payable from the
454     income and revenues of the corporation.
455          (2) In connection with the issuance of a corporation bond, the corporation may:
456          (a) pledge all or any part of the corporation's gross or net revenues to which the
457     corporation:
458          (i) has a right that exists at issuance of the corporation bond; or
459          (ii) may have a right that comes into existence after issuance of the corporation bond;
460     and
461          (b) make any covenant or perform any act calculated to make the bond more
462     marketable.
463          (3) A member of the board or other person executing a corporation bond is not liable
464     personally on the corporation bond.
465          (4) (a) A corporation bond:
466          (i) is not a general obligation or liability of the state or any of the state's political
467     subdivisions; and
468          (ii) does not constitute a charge against the general credit or taxing powers of the state
469     or any of the state's political subdivisions.
470          (b) A corporation bond is not payable out of money or properties other than those of
471     the corporation pledged for the payment of the bond.
472          (c) A community, the state, or a political subdivision of the state may not be liable on a
473     corporation bond.
474          (d) A corporation bond does not constitute indebtedness within the meaning of a
475     constitutional or statutory debt limitation.
476          (5) A corporation bond is fully negotiable.
477          (6) A corporation bond is:
478          (a) issued for an essential public and governmental purpose; and
479          (b) together with interest on the corporation bond and income from the corporation
480     bond, exempt from state taxes except the corporate franchise tax.
481          (7) Nothing in this section may be construed to limit the right of an obligee to pursue a
482     remedy for the enforcement of a pledge or lien given under this part by the corporation on the
483     corporation's rents, fees, grants, properties, or revenues.
484          Section 13. Section 63H-6-204 is enacted to read:
485          63H-6-204. Purchaser of a corporation bond.
486          (1) The following may purchase a corporation bond with funds owned or controlled by
487     the purchaser:
488          (a) a person;
489          (b) a political subdivision of the state;
490          (c) another entity; or
491          (d) a public or private officer.
492          (2) Nothing in this part may be construed to relieve a purchaser of a corporation bond
493     of a duty to exercise reasonable care in selecting securities.
494          (3) The corporation may purchase the corporation's own corporation bond at a price
495     that the board determines.
496          Section 14. Section 63H-6-205 is enacted to read:
497          63H-6-205. Obligee rights.
498          In addition to a right that is conferred on an obligee of a corporation bond and subject to
499     contractual restrictions binding on the obligee, an obligee may:
500          (1) by mandamus, suit, action, or other proceeding:
501          (a) compel the corporation and the corporation's board, officers, agents, or employees
502     to perform every term, provision, and covenant contained in a contract of the corporation with
503     or for the benefit of the obligee; and
504          (b) require the corporation to carry out the covenants and agreements of the corporation
505     and to fulfill the duties imposed on the corporation by this part; and
506          (2) by suit, action, or proceeding in equity enjoin an act that is unlawful or violates the
507     rights of the obligee.
508          Section 15. Repealer.
509          This bill repeals:
510          Section 63A-5-306, Leasing of state fair park -- Lease -- Terms -- Demolition of
511     facilities -- Limits on debt or obligations.
512          Section 16. Appropriation.
513          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, for
514     the fiscal year beginning July 1, 2016, and ending June 30, 2017, the following sums of money
515     are appropriated from resources not otherwise appropriated, or reduced from amounts
516     previously appropriated, out of the funds or amounts indicated. These sums of money are in
517     addition to amounts previously appropriated for fiscal year 2017.
518          To Legislature - Senate
519               From General Fund
$10,000

520               Schedule of Programs:
521                    Administration                         $10,000
522          To Legislature - House of Representatives
523               From General Fund
$10,000

524               Schedule of Programs:
525                    Administration                         $10,000
526          To Legislature - Office of Legislative Research and General Counsel
527               From General Fund
$35,000

528               Schedule of Programs:
529                    Administration                         $35,000