Bill Text: MI SB1074 | 2011-2012 | 96th Legislature | Introduced

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Bill Title: Recreation; fairs; annual state fair; authorize. Amends secs. 2, 4, 6, 7, 8, 9, 11, 12, 14a & 15a of 1978 PA 361 (MCL 285.162 et seq.) & adds sec. 5a.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-04-18 - Referred To Committee On Agriculture [SB1074 Detail]

Download: Michigan-2011-SB1074-Introduced.html

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SENATE BILL No. 1074

 

 

April 18, 2012, Introduced by Senator HUNE and referred to the Committee on Agriculture.

 

 

 

     A bill to amend 1978 PA 361, entitled

 

"Michigan exposition and fairgrounds authority act,"

 

by amending sections 2, 4, 6, 7, 8, 9, 11, 12, 14a, and 15a (MCL

 

285.162, 285.164, 285.166, 285.167, 285.168, 285.169, 285.171,

 

285.172, 285.174a, and 285.175a), as amended by 2004 PA 468, and by

 

adding section 5a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. As used in this act:

 

     (a) "Authority" means the state exposition and fairgrounds

 

authority created in section 9.4.

 

     (b) "Authority board" means the board for the authority

 

appointed under section 9.

 

     (c) "Commission" means the commission of agriculture and rural

 

development.

 

     (d) (c) "Department" means the department of management and

 

budget.agriculture and rural development.

 

     (e) (d) "Director" means the director of the department.

 

     (f) (e) "Fund" means the state exposition and fairgrounds fund

 

created in section 14a.

 

     (g) (f) "Manager" means the manager of the authority appointed

 

under section 4.

 

     (h) "Michigan state fair" means the Michigan state fair as

 

designated annually by the commission.

 

     (i) "State exposition and fairgrounds" means the state-owned

 

property which is part of the property commonly known as the

 

Michigan state fairgrounds, is located in the city of Detroit,

 

Wayne county, Michigan, and is further described as follows:

 

     (i) A parcel of land in the NE 1/4, NW 1/4 & SE 1/4 of Section

 

2 and the NE 1/4 of Section 3, T1S R11E, City of Detroit, Wayne

 

County, Michigan and more particularly described as commencing at

 

the Northwest corner of said Section 2; thence S01°59'26"E, 33.00

 

feet to the North line of Germans Montrose Park Subdivision and the

 

south right of way of Eight Mile Road; thence N88°00'34"E, 1323.68

 

feet, on the north line of Germans Montrose Subdivision to the

 

Northeast corner of said Subdivision and the Point of Beginning of

 

this description; thence N88°00'34"E, on the South right of way

 

line of Eight Mile Road, 1249.15 feet, to the Southwesterly right

 

of way of the Grand Trunk Western Railroad; thence on said right of

 

way on the next five calls; thence S31°13'25" E, 169.96 feet;

 

thence S44°18'21"E, 110.43 feet; thence S31°13'25"E, 2503.17 feet;

 

thence S01°15'10"E, 40.04 feet; thence S31°13'25"E, 226.77 feet to

 

the centerline of State Fair Avenue and the E-W 1/4 line of said

 

Section 2; thence N89°08'56"E, on said E-W 1/4 Line, 17.39 feet;

 

thence S31°13'25"E, on the westerly line of the Grand Trunk

 

Westerly Railroad, 317.18 feet; thence S88°52'19"W, 280.64 feet;

 

thence N01°19'28"W, 275.02 feet to the E-W 1/4 line of said Section

 

2; thence S89°08'56"W, 1319.94 feet, on said E-W 1/4 line and

 

centerline of State Fair Avenue to the center of said Section 2;

 

thence S88°32'46"W, 1290.77 feet, on said E-W 1/4 line and

 

centerline of State Fair Avenue; thence N01°32'55"W, 33.00 feet to

 

the North line of State Fair Avenue; thence S88°32'46"W, 692.91

 

feet, on the North line of State Fair Avenue to the Northeast right

 

of way line of Woodward Avenue; thence N26°34'10"W, on said

 

Woodward Avenue right of way, 400.14 feet: thence along the

 

boundary of the DNR Pocket Park the following five calls: thence

 

N88°09'24"E, 291.51 feet; thence N00°25'49", 252.35 feet; thence

 

S88°45'56"W, 169.82 feet; thence N01°14'04"W, 13.00 feet thence

 

S88°25'45"W; 251.61 feet to the Northeast right of way line of

 

Woodward Avenue; thence N26°34'10"W, 1033.60 feet, on said Woodward

 

Avenue right of way to the Southwest corner of lot #24, Plat of

 

State Fair Subdivision #2; thence N88°21'23"E, 1382.91 feet, on the

 

south line of said State Fair Subdivision #2; thence N01°41'24"W,

 

1008.30 feet, on the East line of said State Fair Subdivision #2 &

 

the East line of said Germans Montrose Park Subdivision to the

 

point of beginning, containing 157.47 acres.

 

     (ii) A parcel of land in the NE 1/4 of Section 2, T1S, R11E,

 

City of Detroit, Wayne County, Michigan; the boundary of said

 

parcel being described as commencing at the North 1/4 Corner of

 

Section 2, T1S, R11E, Michigan Meridian; thence N 88°00'34" E,

 

along the North Section line, 30.11 feet; thence S 31°13'25" E,

 

along the Northeasterly right of way of the Grand Trunk Western

 

Railroad, 1538.78 feet to the POINT OF BEGINNING; thence N

 

88°05'49" E, 537.23 feet; thence S 01°15'10" E, 937.64 feet; thence

 

N 31°13'25" W, along said right of way line, 1075.34 feet to the

 

point of beginning; said parcel contains 5.78 acres.

 

     (j) (g) "Type I transfer" means that term as defined in

 

section 3 of the executive organization act of 1965, 1965 PA 380,

 

MCL 16.103.

 

     Sec. 4. (1) The Michigan exposition and fairgrounds authority

 

is created as a public body corporate within the department. The

 

authority shall be administered under the supervision of the

 

department but shall exercise its prescribed statutory power,

 

duties, and functions independently of the department.

 

     (2) The activities, powers, duties, functions,

 

responsibilities, and rule-making authority of the department of

 

agriculture related to the management of the state exposition and

 

fairgrounds are transferred by type I transfer to the authority.

 

     (3) All records, personnel, property, grants, and unexpended

 

balances of appropriations, allocations, and other funds used,

 

held, employed, available, or to be made available to the

 

department of agriculture for the activities, powers, duties,

 

functions, and responsibilities related to the state exposition and

 

fairgrounds are transferred to the authority. The state budget

 

director shall determine and authorize the most efficient manner

 

possible for handling financial transactions and records in the

 

state's financial management system for the remainder of the fiscal

 

year ending September 30, 2005.

 

     (4) The governor shall appoint a manager of the authority

 

subject to the advice and consent of the senate, who is exempt from

 

the classified state civil service. The manager shall serve at the

 

pleasure of the governor. The manager shall administer the business

 

operations of the state fair and the authority as provided in this

 

act. The manager shall receive compensation determined annually by

 

the authority. The person serving as manager on February 28, 2005

 

shall continue to serve at the pleasure of the governor.

 

     Sec. 5a. The commission shall annually identify a location and

 

the date or dates for holding a Michigan state fair. The department

 

shall facilitate the holding of the Michigan state fair. The

 

Michigan state fair and related exhibits and events shall promote

 

all phases of the economy of this state and shall encourage and

 

demonstrate agricultural, industrial, commercial, educational,

 

entertainment, tourism, technological, cultural, and recreational

 

pursuits available within this state.

 

     Sec. 6. (1) The authority shall do all of the following:

 

     (a) Conduct an annual state fair and other exhibits or events

 

for the purpose of promoting all phases of the economy of this

 

state. This fair and the exhibits or events shall encourage and

 

demonstrate agricultural, industrial, commercial, educational,

 

entertainment, tourism, technological, cultural, and recreational

 

pursuits.Assist the commission and the department in holding the

 

Michigan state fair.

 

     (b) Lease the state exposition and fairgrounds, a portion of

 

the state exposition and fairgrounds, or a building on the state

 

exposition and fairgrounds for purposes considered by the authority

 

to be consistent with the staging of the state fair and other

 

exhibits or events. The authority may determine and impose rental

 

charges and other fees for the use or lease of the buildings and

 

grounds or a portion of the buildings and grounds. The authority

 

may lease properties to private and public organizations for a

 

period not to exceed 30 years for consideration established by the

 

authority. The authority may grant leases for all or a portion of

 

the state exposition and fairgrounds to private and public

 

organizations, conditional upon construction and improvements

 

according to plans approved by the authority to be financed by the

 

lessees, for terms not to exceed 30 years. The authority may grant

 

an extension of the lease term for not more than an additional 20

 

years. The use of the state exposition and fairgrounds, a portion

 

of the state exposition and fairgrounds, or a building on the state

 

exposition and fairgrounds shall not interfere with the preparation

 

for or holding of the Michigan state fair, if the commission

 

decides to hold the Michigan state fair at the state exposition and

 

fairgrounds, and other exhibits or events. Land, a building, or

 

other property that is leased under this subdivision to a for-

 

profit business shall be leased at fair market value. All leases

 

and contracts entered into under this act remain valid until the

 

expiration of the term of the lease or contract.

 

     (c) Enter into contracts, subject to the requirements of the

 

management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, to

 

conduct the annual Michigan state fair, and other exhibits , or

 

other events , at the state exposition and fairgrounds that enhance

 

agricultural, industrial, commercial, recreational, educational,

 

entertainment, tourism, technological, or cultural pursuits or

 

government services to citizens.

 

     (2) The authority may enter into cooperative agreements,

 

contracts, or other agreements with 1 or more governmental entities

 

to use the personnel, services, or facilities of the governmental

 

entity to assist the authority with carrying out its duties under

 

this act and as otherwise provided by law.

 

     Sec. 7. (1) The authority annually shall present a report to

 

the governor, the legislature, and the department describing the

 

receipts or expenditures through appropriation, gift, grant, or

 

conveyance that have a material bearing on the operation of the

 

Michigan state fair or the state exposition and fairgrounds.

 

     (2) The authority shall be subject to annual post audits of

 

its financial transactions and accounts and to performance post

 

audits by the auditor general.

 

     (3) The authority may promulgate rules governing the conduct

 

management of the annual state fair and state exposition and

 

fairgrounds and the development and administration of the state

 

exposition and fairgrounds as a commercial, agricultural,

 

recreational, and multipurpose facility, pursuant to the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328. Any rules in effect on the effective date of the amendatory

 

act that added this sentence March 1, 2005 shall remain in effect

 

until rescinded by the authority.

 

     Sec. 8. The manager shall do all of the following:

 

     (a) Be directly responsible to the authority.

 

     (b) Be the chief administrative officer for the management and

 

operation of the state exposition and fairgrounds, and may enter

 

into contracts and leases, subject to the requirements of the

 

management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594, as

 

authorized by rule promulgated under this act.

 

     (c) Have as a primary work station the site of the state

 

exposition and fairgrounds.

 

     (d) Serve as an appointing authority for any necessary

 

personnel associated with the management and operation of the state

 

exposition and fairgrounds.

 

     (e) Be responsible for the financial operation of the state

 

exposition and fairgrounds.

 

     (f) Develop ideas and programs that enhance the operation and

 

functioning of the state exposition and fairgrounds.

 

     (g) Be responsible for the preparation of the annual budget

 

for the state exposition and fairgrounds for presentation to the

 

department.

 

     (h) Develop and present to the authority board for its

 

approval each of the following:

 

     (i) A financial plan submitted annually.

 

     (ii) A rolling 5-year operations plan submitted annually.

 

     (iii) A facility and utility renovation plan, updated as

 

determined by the manager or as requested by the authority board.

 

     (iv) A long-range master plan for authority facilities and the

 

state exposition and fairgrounds, updated as determined by the

 

manager or as requested by the authority board.

 

     Sec. 9. (1) A state exposition and fairgrounds authority shall

 

be governed by the 11-member authority board appointed under this

 

section. The authority board shall consist of the following

 

members:

 

     (a) The director or a designated representative as an ex

 

officio voting member.

 

     (b) The director of the department of agriculture technology,

 

management, and budget or a designated representative as an ex

 

officio voting member.

 

     (c) Nine members, not more than 5 of whom shall be members of

 

the same political party, appointed by the governor by and with the

 

consent of the senate. The term of office of each member in this

 

subdivision shall be 3 years except that, of the members first

 

appointed, 3 shall serve for 1 year, 3 shall serve for 2 years, and

 

3 shall serve for 3 years. The former state exposition and

 

fairgrounds council existing before March 1, 2005 is abolished. The

 

governor shall appoint the 9 appointed members to serve on the

 

authority board, and the terms of those members shall begin on

 

March 1, 2005. Members of the former council are eligible for

 

appointment to the authority board if otherwise qualified. It is

 

the intent of the legislature that the members of the authority

 

board represent all geographic areas of the state. The 9 appointed

 

members shall be chosen from the following categories:

 

     (i) Three members representing agricultural interests.

 

     (ii) One member representing the tourism industry in Michigan.

 

     (iii) Two members of the general public.

 

     (iv) One member representing organized labor.

 

     (v) One member representing the business community.

 

     (vi) One member representing county fairs.

 

     (2) Upon appointment to the authority board under subsection

 

(1), and upon the taking and filing of the constitutional oath of

 

office, a member of the authority board shall enter the office and

 

exercise the duties of the office.

 

     (3) Regardless of the cause of a vacancy on the authority

 

board, the governor shall fill a vacancy in the office of a member

 

of the authority board by appointment by and with the advice and

 

consent of the senate. A vacancy shall be filled for the balance of

 

the unexpired term. A member of the authority board shall hold

 

office until a successor has been appointed and has qualified.

 

     (4) Members of the authority board and officers and employees

 

of the authority are subject to 1968 PA 317, MCL 15.321 to 15.330.

 

A member of the authority board or an officer, employee, or agent

 

of the authority board shall discharge the duties of his or her

 

position in a nonpartisan manner, with good faith, and with that

 

degree of diligence, care, and skill that an ordinarily prudent

 

person would exercise under similar circumstances in a like

 

position. In discharging his or her duties, a member of the

 

authority board or an officer, employee, or agent of the authority

 

board, when acting in good faith, may rely upon the opinion of

 

counsel for the authority, upon the report of an independent

 

appraiser selected with reasonable care by the authority board, or

 

upon financial statements of the authority represented to the

 

member of the authority board, officer, employee, or agent to be

 

correct by the officer of the authority having charge of its books

 

or account, or stated in a written report by the auditor general or

 

a certified public accountant or the firm of the accountants fairly

 

to reflect the financial condition of the authority.

 

     (5) The authority board may adopt bylaws and policies and

 

procedures for conducting its business. Six members of the

 

authority board constitute a quorum for the transaction of

 

business. An action of the authority board requires a concurring

 

vote by 6 members of the authority board.

 

     (6) Authority board members shall serve without compensation

 

and shall receive reimbursement for actual and necessary expenses.

 

     (7) The governor shall designate a member of the authority

 

board to serve as its chairperson, who shall serve as chairperson

 

at the pleasure of the governor. The authority board shall annually

 

select other officers from its membership.

 

     (8) The director and the director of the department of

 

agriculture technology, management, and budget shall not serve as

 

officers of the authority board.

 

     (9) The authority board shall meet not less than 4 times per

 

year.

 

     (10) At least 1 meeting of the authority board shall be

 

dedicated to soliciting input from the local neighborhood advisory

 

council established under section 15b, the surrounding communities,

 

and local units of government.

 

     Sec. 11. Except as otherwise provided in this act, the

 

authority board shall do all things necessary or convenient to

 

implement the purposes, objectives, and provisions of this act, and

 

the purposes, objectives, and powers delegated to the authority by

 

other laws or executive orders, including, but not limited to, all

 

of the following:

 

     (a) Review and approve policies, including dates for the fair

 

and the budget for the Michigan state fair and the state exposition

 

and fairgrounds.

 

     (b) Develop and submit to the department, the legislature, and

 

the governor on a yearly basis a rolling 5-year operational plan

 

and construction plan, including a master plan for the use of

 

buildings and the grounds of the state exposition and fairgrounds.

 

     (c) Report to the director, the legislature, and the governor

 

on the operating budget, capital improvements, programs, exhibits,

 

and other matters relevant to the state exposition and fairgrounds.

 

     (d) Approve or authorize the manager to approve utilization of

 

the state exposition and fairgrounds, including its use as the site

 

for the annual Michigan state fair, if the commission decides to

 

hold the Michigan state fair at the state exposition and

 

fairgrounds and on any other matter which the authority may regard

 

as appropriate.

 

     (e) Promote, encourage, and assist the manager in conducting

 

exhibits or other events at the state exposition and fairgrounds

 

that enhance agricultural, industrial, commercial, recreational,

 

educational, or cultural pursuits or government service to

 

citizens.

 

     Sec. 12. (1) In staging the annual Michigan state fair, the

 

authority, at the direction of the department, may enter into

 

licensing agreements with concessionaires permitting games of skill

 

which shall be conducted in accordance with the following criteria:

 

     (a) Winning the game of skill does not require great skill on

 

the part of the participant.

 

     (b) The game does not constitute a fraud upon the

 

participants.

 

     (c) The game is not similar to games of chance in which

 

winning depends primarily upon fortuitous or accidental

 

circumstances beyond the control of the participant including games

 

such as roulette, beano, cards, dice, or wheels of fortune and the

 

game does not include a mechanical or physical device that directly

 

or indirectly impedes, impairs, or thwarts the skill of the player.

 

     (d) If the game is a group or contest participation game, each

 

participant shall be in attendance at the time the game is played

 

and shall actively participate throughout the entire game by

 

personally designating his or her target, goal, or desired

 

objective. A winner shall be determined by the skill of 1 or more

 

of the participants in the group or contest game, and each

 

participant shall be randomly selected. The distribution of prizes

 

shall be made in the presence of each participant at the time the

 

game is played.

 

     (e) The prize has nominal value and is not redeemable or

 

convertible into cash, directly or indirectly.

 

     (2) The department may promulgate rules pursuant to the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328, consistent with the criteria established in subsection (1)

 

to regulate the conduct of games of skill during the annual state

 

fair and to protect the public from unauthorized or dishonest

 

practices in conducting those games.

 

     (3) The department may, after an administrative hearing held

 

pursuant to the administrative procedures act of 1969, 1969 PA 306,

 

MCL 24.201 to 24.328, revoke the licensing agreement of a

 

concessionaire if the department determines that the concessionaire

 

has defrauded the public is being defrauded, or that violated this

 

act or a rule promulgated pursuant to this act. is being violated.

 

     (4) The department may promulgate rules pursuant to the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328, to permit the operation of a bingo or a millionaire party

 

permitted and licensed under the Traxler-McCauley-Law-Bowman bingo

 

act, 1972 PA 382, MCL 432.101 to 432.120. The authority may lease

 

facilities as a location within or at which an organization

 

qualified and licensed under that act may conduct bingo or a

 

millionaire party.

 

     Sec. 14a. (1) The state exposition and fairgrounds fund is

 

created within the state treasury. The fund shall be administered

 

by the authority.

 

     (2) The state treasurer shall direct the investment of the

 

fund. The state treasurer shall credit to the fund interest and

 

earnings from fund investments. The state treasurer may receive

 

money or other assets from any source for deposit into the fund.

 

Money generated from the operation of activities authorized by this

 

act shall be deposited into the fund.

 

     (3) Money in the fund at the close of the fiscal year shall

 

remain in the fund and shall not lapse to the general fund.

 

     (4) The authority shall submit an annual report to the

 

legislature and the department showing the amount of money received

 

under this act and how that money was spent.

 

     (5) The money in the fund shall be expended pursuant to

 

appropriation of the legislature by the authority in the following

 

order of priority:

 

     (a) Providing for an annual the Michigan state fair.

 

     (b) Maintaining the state exposition and fairgrounds.

 

     (c) Any other purpose authorized under this act.

 

     Sec. 15a. The authority may demolish or permit the demolition

 

of any building or structure on the state exposition and

 

fairgrounds that is determined by the authority to be unsuitable

 

for uses consistent with the holding of the state fair.purposes of

 

the state exposition and fairgrounds.