SB-1130, As Passed Senate, September 21, 2004
SUBSTITUTE FOR
SENATE BILL NO. 1130
A bill to amend 1978 PA 361, entitled
"Michigan exposition and fairgrounds act,"
by amending the title and sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10,
11, 12, 13, 14a, and 15a (MCL 285.161, 285.162, 285.163, 285.164,
285.165, 285.166, 285.167, 285.168, 285.169, 285.170, 285.171,
285.172, 285.173, 285.174a, and 285.175a), sections 2, 5, 6, 7,
8, 9, and 11 as amended and sections 14a and 15a as added by 2000
PA 39, and by adding section 15b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 TITLE
2 An act to provide for the control and management of certain
3 state exposition centers and fairgrounds; to create a state
4 exposition center and
fairgrounds council authority and board
5 within the department of management and budget; to prescribe
6 its the authority's and board's powers and duties;
to provide
1 for the appointment of a state exposition center and fairgrounds
2 manager and to prescribe the manager's powers and duties; to
3 designate the method of financing state exposition centers and
4 fairgrounds; to create
certain funds; and to repeal certain
5 acts and parts of acts.
6 Sec. 1. This act shall be known and may be cited as the
7 "Michigan exposition and fairgrounds authority act".
8 Sec. 2. As used in this act:
9 (a) "Council"
"Authority" means the state exposition and
10 fairgrounds council authority
created in section 9.
11 (b) "Authority board" means the board for the authority
12 appointed under section 9.
13 (c) (b) "Department"
means the department of agriculture
14 management and budget.
15 (d) (c) "Director"
means the director of the department.
16 (e) (d) "Fund"
means the state exposition and fairgrounds
17 fund created in section 14a.
18 (f) (e) "Manager"
means the manager of the state
19 exposition and
fairgrounds authority appointed
under section 4.
20 (g) "Type I transfer" means that term as defined in section
21 3 of the executive organization act of 1965, 1965 PA 380, MCL
22 16.103.
23 Sec. 3. (1) This act
shall does not apply to the Upper
24 Peninsula state fair
conducted under Act No. 89 of the Public
25 Acts of 1927, as
amended, being sections 285.141 to 285.142 of
26 the Michigan Compiled
Laws 1927 PA 89, MCL 285.141 to
285.145.
27 (2) This act shall
does not apply to a fair conducted by a
1 county of this state, or to a fair conducted under the official
2 authorization of the county board of commissioners or other duly
3 constituted county regional authority.
4 (3) This act shall not apply to uses of fairgrounds
5 permitted under Act
No. 80 of the Public Acts of 1941, being
6 section 285.151 of the
Michigan Compiled Laws 1941 PA
80, MCL
7 285.151.
8 Sec. 4. (1) A
state exposition and fairgrounds office is
9 created in the office
of the director. The Michigan
exposition
10 and fairgrounds authority is created as a public body corporate
11 within the department. The authority shall be administered under
12 the supervision of the department but shall exercise its
13 prescribed statutory power, duties, and functions independently
14 of the department.
15 (2) The activities, powers, duties, functions,
16 responsibilities, and rule-making authority of the department of
17 agriculture related to the management of the state exposition and
18 fairgrounds are transferred by type I transfer to the authority.
19 (3) All records, personnel, property, grants, and unexpended
20 balances of appropriations, allocations, and other funds used,
21 held, employed, available, or to be made available to the
22 department of agriculture for the activities, powers, duties,
23 functions, and responsibilities transferred to the authority are
24 transferred to the authority. The state budget director shall
25 determine and authorize the most efficient manner possible for
26 handling financial transactions and records in the state's
27 financial management system for the remainder of the fiscal year
1 ending September 30, 2005.
2 (4) The
governor shall appoint a manager upon of the
3 authority by and with the advice and consent of the senate, who
4 shall be is exempt from the classified state civil
service.
5 The manager shall serve at the pleasure of the governor and shall
6 administer the business operation
operations of the state fair
7 and the authority as provided in this act. The manager shall
8 receive compensation
determined annually by the legislature
9 authority. The person serving as the manager of the state
10 exposition and fairgrounds office on September 30, 2004 shall
11 continue to serve as the state exposition and fairgrounds manager
12 at the pleasure of the governor.
13 Sec. 5. The control of all land and other property held or
14 acquired by the this
state or its people for the purpose of
15 holding and conducting agricultural and industrial fairs and
16 exhibitions is vested in
the department authority.
17 Sec. 6. (1)
The department authority shall do all of the
18 following:
19 (a) Conduct an annual state fair and other exhibits or events
20 for the purpose of promoting all phases of the economy of this
21 state. This fair and the exhibits or events shall encourage and
22 demonstrate agricultural, industrial, commercial, educational,
23 entertainment, tourism, technological, cultural, and recreational
24 pursuits.
25 (b) Lease the state exposition and fairgrounds, a portion of
26 the state exposition and fairgrounds, or a building on the state
27 exposition and fairgrounds for purposes considered by the
1 department authority to be consistent with the staging of
the
2 state fair and other
exhibits or events. The department
3 authority may determine and impose rental charges and other fees
4 for the use or lease of the buildings and grounds or a portion of
5 the buildings and
grounds. The department authority may lease
6 properties to private and public organizations for a period not
7 to exceed 30 years for consideration established by the
8 department authority. The department authority
may grant
9 leases for all or a portion of the state exposition and
10 fairgrounds to private and public organizations, conditional upon
11 construction and improvements according to plans approved by the
12 department authority to be financed by the lessees, for
terms
13 not to exceed 30 years.
The department authority may grant an
14 extension of the lease term for not more than an additional 20
15 years. The use of the state exposition and fairgrounds, a
16 portion of the state exposition and fairgrounds, or a building on
17 the state exposition and fairgrounds shall not interfere with the
18 preparation for or holding of the state fair and other exhibits
19 or events. Land, a building, or other property that is leased
20 under this subdivision to a for-profit business shall be leased
21 at fair market value. All leases and contracts entered into
22 under this act remain valid until the expiration of the term of
23 the lease or contract.
24 (c) Enter into contracts, subject to the requirements of the
25 management and budget act, 1984 PA 431, MCL 18.1101 to 18.1594,
26 to conduct the annual state fair, exhibits, or other events, at
27 the state exposition and fairgrounds that enhance agricultural,
1 industrial, commercial, recreational, educational, entertainment,
2 tourism, technological, or cultural pursuits or government
3 services to citizens.
4 (2) The authority may enter into cooperative agreements,
5 contracts, or other agreements with 1 or more governmental
6 entities to use the personnel, services, or facilities of the
7 governmental entity to assist the authority with carrying out its
8 duties under this act and as otherwise provided by law.
9 (3) In the time period during which the annual state fair is
10 not being conducted, the authority is prohibited from conducting
11 or allowing either of the following activities:
12 (a) Except as may otherwise be allowed under sections 12 and
13 13, gaming as defined in section 2 of the Initiated Law of 1996,
14 MCL 432.202, and racing and pari-mutuel wagering conducted under
15 the horse racing law of 1995, 1995 PA 279, MCL 431.301 to
16 431.336.
17 (b) Outdoor automobile or other motorized vehicle racing.
18 Sec. 7. (1) The department
authority annually shall
19 present a report to the governor, the legislature, and the
20 council department describing the receipts or
expenditures
21 through appropriation, gift, grant, or conveyance that have a
22 material bearing on the operation of the state fair or the state
23 exposition and fairgrounds.
24 (2) An annual
audit of the books and records of the state
25 exposition and
fairgrounds shall be made by the auditor general
26 The authority shall be subject to annual post audits of its
27 financial transactions and accounts and to performance post
1 audits by the auditor general.
2 (3) The department
shall authority may promulgate rules
3 governing the conduct of the annual state fair and state
4 exposition and fairgrounds and the development and administration
5 of the state exposition and fairgrounds as a commercial,
6 agricultural, recreational, and multipurpose facility, pursuant
7 to the administrative procedures act of 1969, 1969 PA 306, MCL
8 24.201 to 24.328. Any rules in effect on the effective date of
9 the amendatory act that added this sentence shall remain in
10 effect until rescinded by the authority.
11 Sec. 8. The manager shall do all of the following:
12 (a) Be directly
responsible to the director authority.
13 (b) Be the chief administrative officer for the management
14 and operation of the state exposition and fairgrounds, and may
15 enter into contracts and leases, subject to the requirements of
16 the management and budget act, 1984 PA 431, MCL 18.1101 to
17 18.1594, as authorized by rule promulgated under this act.
18 (c) Have as a primary work station the site of the state
19 exposition and fairgrounds.
20 (d) Through the
department, hire all Serve as an appointing
21 authority for any necessary personnel associated with the
22 management and operation of the state exposition and
23 fairgrounds.
24 (e) Be responsible for the financial operation of the state
25 exposition and fairgrounds.
26 (f) Develop ideas and programs that enhance the operation and
27 functioning of the state exposition and fairgrounds.
1 (g) Be responsible for the preparation of the annual budget
2 for the state exposition and fairgrounds for presentation to the
3 department.
4 (h) Develop and present to the authority board for its
5 approval each of the following:
6 (i) A financial plan submitted annually.
7 (ii) A rolling 5-year operations plan submitted annually.
8 (iii) A facility and utility renovation plan, updated as
9 determined by the manager or as requested by the authority
10 board.
11 (iv) A long-range master plan for authority facilities and
12 the state exposition and fairgrounds, updated as determined by
13 the manager or as requested by the authority board.
14 Sec. 9. (1) A state
exposition and fairgrounds council is
15 established within the
department authority shall be
governed by
16 the 11-member authority board appointed under this section. The
17 council authority board shall consist of the following
18 members:
19 (a) The director or a designated representative as an ex
20 officio voting member.
21 (b) The director of
the department of natural resources
22 agriculture or a designated representative as an ex officio
23 voting member.
24 (c) Nine members, not more than 5 of whom shall be members
25 of the same political party, appointed by the governor by and
26 with the consent of the senate. The term of office of each
27 member in this subdivision shall be 3 years except that, of the
1 members first appointed, 2
3 shall serve for 1 year, 3 shall
2 serve for 2 years, and 4
3 shall serve for 3 years. In case
3 of vacancy, an
appointment to fill the vacancy shall be made in
4 the same manner as the
original appointment for the unexpired
5 term. Three members
shall be engaged in the agriculture
6 industry, 1 member
shall represent labor, 2 members shall
7 represent business, 1
member shall be from the travel industry,
8 and 2 members shall be
from the general public. The
former state
9 exposition and fairgrounds council existing before October 1,
10 2004 is abolished. The governor shall appoint the 9 appointed
11 members to serve on the authority, and the terms of those members
12 shall begin on October 1, 2004. Members of the former council
13 are eligible for appointment to the authority if otherwise
14 qualified. It is the intent of the legislature that the members
15 of the board represent all geographic areas of the state. The 9
16 appointed members shall be chosen from the following categories:
17 (i) Three members representing agricultural interests, 1 of
18 whom shall be a fair exhibitor.
19 (ii) One member representing the tourism industry in
20 Michigan.
21 (iii) Two members of the general public.
22 (iv) One member representing organized labor.
23 (v) One member representing the business community.
24 (vi) One member representing county fairs.
25 (2) Of the 9 appointed members meeting the criteria of the
26 categories described in subsection (1)(c)(i) through (vi), at
27 least 1 member from any category shall be a resident of each of
1 the following:
2 (a) Detroit.
3 (b) Ferndale.
4 (c) Hazel Park.
5 (3) Upon appointment to the authority board under subsection
6 (1), and upon the taking and filing of the constitutional oath of
7 office, a member of the authority board shall enter the office
8 and exercise the duties of the office.
9 (4) Regardless of the cause of a vacancy on the authority
10 board, the governor shall fill a vacancy in the office of a
11 member of the authority board by appointment by and with the
12 advice and consent of the senate. A vacancy shall be filled for
13 the balance of the unexpired term. A member of the authority
14 board shall hold office until a successor has been appointed and
15 has qualified.
16 (5) Members of the authority board and officers and
17 employees of the authority are subject to 1968 PA 317, MCL 15.321
18 to 15.330. A member of the board or an officer, employee, or
19 agent of the authority shall discharge the duties of his or her
20 position in a nonpartisan manner, with good faith, and with that
21 degree of diligence, care, and skill that an ordinarily prudent
22 person would exercise under similar circumstances in a like
23 position. In discharging his or her duties, a member of the
24 board or an officer, employee, or agent of the authority, when
25 acting in good faith, may rely upon the opinion of counsel for
26 the authority, upon the report of an independent appraiser
27 selected with reasonable care by the board, or upon financial
1 statements of the authority represented to the member of the
2 board, officer, employee, or agent to be correct by the officer
3 of the authority having charge of its books or account, or stated
4 in a written report by the auditor general or a certified public
5 accountant or the firm of the accountants fairly to reflect the
6 financial condition of the authority.
7 (6) The authority board may adopt bylaws and policies and
8 procedures for conducting its business. Six members of the
9 authority board constitute a quorum for the transaction of
10 business. An action of the authority board requires a concurring
11 vote by 6 members of the authority board.
12 (7) (2)
Council Authority board members shall be paid a
13 per diem serve without compensation and shall
receive
14 reimbursement of for
actual and necessary expenses.
15 (8) (3) The
council governor shall designate a member of
16 the authority board to serve as its chairperson, who shall serve
17 as chairperson at the pleasure of the governor. The authority
18 board shall annually
select a chairperson and other officers
19 from its membership.
20 (9) (4) The
director and the director of the department of
21 natural resources agriculture shall not serve as officers of
22 the council authority.
23 (10) (5) The
council authority board shall be provided
24 staff assistance by
the department to carry out its functions and
25 shall meet not less than 4 times per year.
26 (11) At least 1 meeting of the authority board shall be
27 dedicated to soliciting input from the local neighborhood
1 advisory council established under section 15b, the surrounding
2 communities, and local units of government.
3 Sec. 10. (1) The
business which that the council
4 authority board may perform shall be conducted at a public
5 meeting of the council
authority board held in compliance with
6 Act No. 267 of the
Public Acts of 1976, being sections 15.261
7 to 15.275 of the
Michigan Compiled Laws the open
meetings act,
8 1976 PA 267, MCL 15.261 to 15.275. Public notice of the time,
9 date, and place of the meeting shall be given in the manner
10 required by Act No.
267 of the Public Acts of 1976 the open
11 meetings act, 1976 PA 267, MCL 15.261 to 15.275.
12 (2) A writing prepared, owned, used, in the possession of,
13 or retained by the council
authority board or department in the
14 performance of an official function shall be made available to
15 the public in compliance
with Act No. 442 of the Public Acts of
16 1976, being sections
15.231 to 15.246 of the Michigan Compiled
17 Laws the freedom of information act, 1976 PA 442, MCL
15.231 to
18 15.246.
19 (3) The authority may employ legal and technical experts and
20 other officers, agents, or employees, permanent or temporary,
21 paid from the funds of the authority. The authority shall
22 determine the qualifications, duties, and compensation of those
23 it employs consistent with requirements established by the civil
24 service commission, but an employee shall not be paid a higher
25 salary than the manager. The authority board may delegate to 1
26 or more members, officers, agents, or employees any powers or
27 duties it considers proper.
1 (4) The authority may contract with the department for the
2 purpose of maintaining and improving the rights and interests of
3 the authority.
4 Sec. 11. The
council Except as otherwise provided in this
5 act, the authority board shall do all things necessary or
6 convenient to implement the purposes, objectives, and provisions
7 of this act, and the purposes, objectives, and powers delegated
8 to the authority by other laws or executive orders, including,
9 but not limited to, all of the following:
10 (a) Review and approve policies, including dates for the fair
11 and the budget.
12 (b) Develop and submit to the department, the legislature,
13 and the governor on a yearly basis a rolling 5-year operational
14 plan and construction plan, including a master plan for the use
15 of buildings and the grounds.
16 (c) (a)
Advise Report to the director, the legislature, and
17 the governor on the operating budget, capital improvements,
18 programs, exhibits, and other matters relevant to the state
19 exposition and fairgrounds.
20 (d) (b)
Advise the director In the event of a vacancy in
21 the office of manager, recommend 2 or more candidates to the
22 governor relative to the
selection of a manager. before
23 selection.
24 (e) (c)
Advise the director with regard to Approve
25 utilization of the state exposition and fairgrounds, including
26 its use as the site for the annual state fair, and on any other
27 matter which the council
authority may regard as appropriate.
1 (f) (d) Promote,
encourage, and assist the director and
2 the manager in conducting exhibits or other events at the state
3 exposition and fairgrounds that enhance agricultural, industrial,
4 commercial, recreational, educational, or cultural pursuits or
5 government service to citizens.
6 (e) Perform other
functions the director or the manager
7 requests.
8 Sec. 12. (1) In staging the annual state fair, the
9 department authority may enter into licensing agreements
with
10 concessionaires permitting games of skill which shall be
11 conducted in accordance with the following criteria:
12 (a) Winning the game of skill does not require great skill
13 on the part of the participant.
14 (b) The game does not constitute a fraud upon the
15 participants.
16 (c) The game is not similar to games of chance in which
17 winning depends primarily upon fortuitous or accidental
18 circumstances beyond the control of the participant including
19 games such as roulette, beano, cards, dice, or wheels of fortune
20 nor is and the game one which includes does
not include a
21 mechanical or physical
device which that directly or indirectly
22 impedes, impairs, or thwarts the skill of the player.
23 (d) If the game is a group or contest participation game,
24 each participant shall be in attendance at the time the game is
25 played and shall actively participate throughout the entire game
26 by personally designating his or her target, goal, or desired
27 objective. A winner shall be determined by the skill of 1 or
1 more of the participants in the group or contest game, and each
2 participant shall be randomly
selected. , and a The
3 distribution of prizes shall be made in the presence of each
4 participant at the time the game is played.
5 (e) The prize has nominal value and is not redeemable or
6 convertible into cash, directly or indirectly.
7 (2) The department
may promulgate rules pursuant to Act
8 No. 306 of the Public
Acts of 1969, as amended the
9 administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
10 24.328, consistent with the criteria established in subsection
11 (1) to regulate the conduct of games of skill during the annual
12 state fair and to protect the public from unauthorized or
13 dishonest practices in conducting those games.
14 (3) The department
may, after a an administrative hearing
15 held pursuant to Act
No. 306 of the Public Acts of 1969, as
16 amended the administrative procedures act of 1969, 1969 PA
306,
17 MCL 24.201 to 24.328, revoke the licensing agreement of a
18 concessionaire if the department determines that the public is
19 being defrauded, or that this act or a rule promulgated pursuant
20 to this act is being violated.
21 (4) The department
may promulgate rules pursuant to Act
22 No. 306 of the Public
Acts of 1969, as amended the
23 administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24 24.328, to permit the operation of a bingo or a millionaire party
25 permitted and licensed
under Act No. 382 of the Public Acts of
26 1972, as amended,
being sections 432.101 to 432.120 of the
27 Michigan Compiled Laws
the Traxler-McCauley-Law-Bowman
bingo
1 act, 1972 PA 382, MCL 432.101 to 432.120. The department
2 authority may lease facilities as a location within or at which
3 an organization qualified
and licensed under Act No. 382 of the
4 Public Acts of 1972,
as amended, that act may
conduct bingo or a
5 millionaire party.
6 Sec. 13. (1)
Sections 301 to 315 of Act No. 328 of the
7 Public Acts of 1931,
as amended, being sections 750.301 to
8 750.315 of the
Michigan Compiled Laws, shall 315a
of the
9 Michigan penal code, 1931 PA 328, MCL 750.301 to 750.315a, do not
10 apply to a person who conducts or participates in a game of skill
11 pursuant to section 12 or the rules promulgated under that
12 section.
13 (2) The department may lease its facilities as a location
14 within or at which an organization qualified and licensed under
15 Act No. 382 of the
Public Acts of 1972, as amended, being
16 sections 432.101 to
432.120 of the Michigan Compiled Laws the
17 Traxler-McCauley-Law-Bowman bingo act, 1972 PA 382, MCL 432.101
18 to 432.120, may conduct bingo.
19 Sec. 14a. (1) The state exposition and fairgrounds fund is
20 created within the state treasury. The fund shall be
21 administered by the authority.
22 (2) The state treasurer shall direct the investment of the
23 fund. The state treasurer shall credit to the fund interest and
24 earnings from fund investments. The state treasurer may receive
25 money or other assets from any source for deposit into the fund.
26 All of the following
shall be deposited in the fund:
27 (a) Money
appropriated from the general fund for the purpose
1 of holding a state
fair that is unencumbered and unspent at the
2 close of the fiscal
year. (b) Money generated from the
3 operation of activities authorized by this act shall be deposited
4 into the fund.
5 (3) Money in the fund at the close of the fiscal year shall
6 remain in the fund and shall not lapse to the general fund.
7 (4) The department
authority shall submit an annual report
8 to the legislature and
the council department showing the
9 amount of money received under this act and how that money was
10 spent.
11 (5) Upon
appropriation, The money in the fund shall be
12 expended pursuant to appropriation of the legislature by the
13 director, with the
advice of the council, to provide authority
14 in the following order of priority:
15 (a) Providing for an
annual state fair. , the maintenance
16 of
17 (b) Maintaining
the state exposition and fairgrounds. , and
18 for any
19 (c) Any other
purpose authorized in section 6 under this
20 act.
21 Sec. 15a. The department
authority may demolish or permit
22 the demolition of any building or structure on the state
23 exposition and
fairgrounds that is determined by the director
24 authority to be unsuitable for uses consistent with the holding
25 of the state fair.
26 Sec. 15b. (1) The authority shall develop a newsletter to
27 be published not less often than twice per calendar year for
1 residents of the surrounding area of the exposition and
2 fairgrounds. The authority shall make the newsletter available
3 electronically on its website and, if requested, by mail.
4 (2) The minutes of the meeting of the authority board shall
5 be posted on the authority's website.
6 (3) The authority shall establish a local neighborhood
7 advisory council for the purpose of public input on the
8 authority's activities.
9 Enacting section 1. This amendatory act takes effect
10 October 1, 2004.