SENATE BILL No. 1130

 

 

March 30, 2004, Introduced by Senators BROWN, JELINEK, BARCIA, McMANUS and GILBERT and referred to the Committee on Agriculture, Forestry and Tourism.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 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.                                                                      

                                                                                

                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 within the            

                                                                                

5   department of management and budget; to prescribe  its  the                 

                                                                                

6   authority's powers and duties; to provide for the appointment of            

                                                                                


                                                                                

1   a state exposition center and fairgrounds manager and to                    

                                                                                

2   prescribe the manager's powers and duties; to designate the                 

                                                                                

3   method of financing state exposition centers and fairgrounds; to            

                                                                                

4   create certain funds; and to repeal  certain  acts and parts of             

                                                                                

5   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) "Department" means the department of  agriculture                       

                                                                                

12  management and budget.                                                      

                                                                                

13      (c) "Director" means the director of the department.                        

                                                                                

14      (d) "Fund" means the state exposition and fairgrounds fund                  

                                                                                

15  created in section 14a.                                                     

                                                                                

16      (e) "Manager" means the manager of the  state exposition and                

                                                                                

17  fairgrounds  authority.                                                     

                                                                                

18      Sec. 3.  (1) This act  shall  does not apply to the Upper                   

                                                                                

19  Peninsula state fair conducted under  Act No.  89 of the Public             

                                                                                

20  Acts of 1927, as amended, being sections 285.141 to 285.142 of              

                                                                                

21  the Michigan Compiled Laws  1927 PA 89, MCL 285.141 to 285.145.             

                                                                                

22      (2) This act  shall  does not apply to a fair conducted by a                

                                                                                

23  county of this state, or to a fair conducted under the official             

                                                                                

24  authorization of the county board of commissioners or other duly            

                                                                                

25  constituted county regional authority.                                      

                                                                                

26      (3) This act shall not apply to uses of fairgrounds                         

                                                                                

27  permitted under  Act No.  80 of the Public Acts of 1941, being              


                                                                                

1   section 285.151 of the Michigan Compiled Laws  1941 PA 80, MCL              

                                                                                

2   285.151.                                                                    

                                                                                

3       Sec. 4.   A state exposition and fairgrounds office is                      

                                                                                

4   created in the office of the director.  The governor shall                  

                                                                                

5   appoint a manager of the authority upon the advice and consent of           

                                                                                

6   the senate, who  shall be  is exempt from the classified state              

                                                                                

7   civil service.  The manager shall administer the business                   

                                                                                

8   operation of the state fair as provided in this act.  The manager           

                                                                                

9   shall receive compensation as a separate line-item appropriation            

                                                                                

10  determined annually by the legislature.                                     

                                                                                

11      Sec. 5.  The control of all land and other property held or                 

                                                                                

12  acquired by the state or its people for the purpose of holding              

                                                                                

13  and conducting agricultural and industrial fairs and exhibitions            

                                                                                

14  is vested in the  department  authority.                                    

                                                                                

15      Sec. 6.  The  department  authority shall do all of the                     

                                                                                

16  following:                                                                  

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

20  demonstrate agricultural, industrial, commercial, and                       

                                                                                

21  recreational pursuits.                                                      

                                                                                

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

                                                                                

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

                                                                                

24  exposition and fairgrounds for purposes considered by the                   

                                                                                

25  department  authority to be consistent with the staging of the             

                                                                                

26  state fair and other exhibits or events.  The  department                   

                                                                                

27  authority may determine and impose rental charges and other fees            


                                                                                

1   for the use or lease of the buildings and grounds or a portion of           

                                                                                

2   the buildings and grounds.  The  department  authority may lease            

                                                                                

3   properties to private and public organizations for a period not             

                                                                                

4   to exceed 30 years for consideration established by the                     

                                                                                

5   department  authority.  The  department  authority may grant               

                                                                                

6   leases for all or a portion of the state exposition and                     

                                                                                

7   fairgrounds to private and public organizations, conditional upon           

                                                                                

8   construction and improvements according to plans approved by the            

                                                                                

9   department  authority to be financed by the lessees, for terms             

                                                                                

10  not to exceed 30 years.  The  department  authority may grant an            

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

14  the state exposition and fairgrounds shall not interfere with the           

                                                                                

15  preparation for or holding of the state fair and other exhibits             

                                                                                

16  or events.  Land, a building, or other property that is leased              

                                                                                

17  under this subdivision to a for-profit business shall be leased             

                                                                                

18  at fair market value.  All leases and contracts entered into                

                                                                                

19  under this act remain valid until the expiration of the term of             

                                                                                

20  the lease or contract.                                                      

                                                                                

21      (c) Enter into contracts to conduct the annual state fair,                  

                                                                                

22  exhibits, or other events, at the state exposition and                      

                                                                                

23  fairgrounds that enhance agricultural, industrial, commercial,              

                                                                                

24  recreational, educational, or cultural pursuits or government               

                                                                                

25  services to citizens.                                                       

                                                                                

26      Sec. 7.  (1) The  department  authority annually shall                      

                                                                                

27  present a report to the governor, the legislature, and the                  


                                                                                

1   council  department describing the receipts or expenditures                

                                                                                

2   through appropriation, gift, grant, or conveyance that have a               

                                                                                

3   material bearing on the operation of the state fair or the state            

                                                                                

4   exposition and fairgrounds.                                                 

                                                                                

5       (2) An annual audit of the books and records of the  state                  

                                                                                

6   exposition and fairgrounds  authority shall be made by the                  

                                                                                

7   auditor general.                                                            

                                                                                

8       (3) The  department shall  authority may promulgate rules                   

                                                                                

9   governing the conduct of the annual state fair and state                    

                                                                                

10  exposition and fairgrounds and the development and administration           

                                                                                

11  of the state exposition and fairgrounds as a commercial,                    

                                                                                

12  agricultural, recreational, and multipurpose facility, pursuant             

                                                                                

13  to the administrative procedures act of 1969, 1969 PA 306, MCL              

                                                                                

14  24.201 to 24.328.  Any rules in effect on the effective date of             

                                                                                

15  the amendatory act that added this sentence shall remain in                 

                                                                                

16  effect until rescinded.                                                     

                                                                                

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

                                                                                

18      (a) Be directly responsible to the  director  authority.                    

                                                                                

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

                                                                                

20  and operation of the state exposition and fairgrounds, and may              

                                                                                

21  enter into contracts and leases as authorized by rule promulgated           

                                                                                

22  under this act.                                                             

                                                                                

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

                                                                                

24  exposition and fairgrounds.                                                 

                                                                                

25      (d) Through the  department  authority, hire all necessary                  

                                                                                

26  personnel associated with the management and operation of the               

                                                                                

27  state exposition and fairgrounds.                                           


                                                                                

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

                                                                                

2   exposition and fairgrounds.                                                 

                                                                                

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

                                                                                

4   functioning of the state exposition and fairgrounds.                        

                                                                                

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

                                                                                

6   for the state exposition and fairgrounds for presentation to the            

                                                                                

7   department.                                                                 

                                                                                

8       Sec. 9.  (1) A state exposition and fairgrounds  council                    

                                                                                

9   authority is established within the department as a type I                  

                                                                                

10  agency.  The  council  authority shall consist of the following             

                                                                                

11  members:                                                                    

                                                                                

12      (a) The director or a designated representative.                            

                                                                                

13      (b) The director of the department of natural resources, the                

                                                                                

14  director of the department of agriculture, or  a  their                     

                                                                                

15  designated representative.                                                  

                                                                                

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

                                                                                

17  of the same political party, appointed by the governor by and               

                                                                                

18  with the consent of the senate.  The term of office of each                 

                                                                                

19  member in this subdivision shall be 3 years except that, of the             

                                                                                

20  members first appointed, 2 shall serve for 1 year, 3 shall serve            

                                                                                

21  for 2 years, and 4 shall serve for 3 years.  In case of vacancy,            

                                                                                

22  an appointment to fill the vacancy shall be made in the same                

                                                                                

23  manner as the original appointment for the unexpired term.  Three           

                                                                                

24  members shall be engaged in the agriculture industry, 1 member              

                                                                                

25  shall represent labor, 2 members shall represent business, 1                

                                                                                

26  member shall be from the travel industry, and 2 members shall be            

                                                                                

27  from the general public.  The members serving on the former                 


                                                                                

1   council on the effective date of the amendatory act that added              

                                                                                

2   this sentence shall serve the remainder of their terms as members           

                                                                                

3   of the authority.                                                           

                                                                                

4       (2)  Council  Authority members shall be paid a per diem                    

                                                                                

5   compensation and receive reimbursement of expenses.                         

                                                                                

6       (3) The  council  authority shall select a chairperson and                  

                                                                                

7   other officers from its membership.                                         

                                                                                

8       (4) The director and the  director  directors of the                        

                                                                                

9   department  departments of natural resources and agriculture               

                                                                                

10  shall not serve as officers of the  council  authority.                     

                                                                                

11      (5) The  council  authority shall be provided staff                         

                                                                                

12  assistance by the department to carry out its functions and shall           

                                                                                

13  meet not less than 4 times per year.                                        

                                                                                

14      Sec. 10.  (1) The business which the  council  authority may                

                                                                                

15  perform shall be conducted at a public meeting of the  council              

                                                                                

16  authority held in compliance with  Act No.  267 of the Public               

                                                                                

17  Acts of 1976, being sections 15.261 to 15.275 of the Michigan               

                                                                                

18  Compiled Laws  the open meetings act, 1976 PA 267, MCL 15.261 to            

                                                                                

19  15.275.  Public notice of the time, date, and place of the                  

                                                                                

20  meeting shall be given in the manner required by  Act No.  267 of           

                                                                                

21  the Public Acts of 1976  the open meetings act, 1976 PA 267, MCL            

                                                                                

22  15.261 to 15.275.                                                           

                                                                                

23      (2) A writing prepared, owned, used, in the possession of,                  

                                                                                

24  or retained by the  council  authority or department in the                 

                                                                                

25  performance of an official function shall be made available to              

                                                                                

26  the public in compliance with  Act No.  442 of the Public Acts of           

                                                                                

27  1976, being sections 15.231 to 15.246 of the Michigan Compiled              


                                                                                

1   Laws  the freedom of information act, 1976 PA 442, MCL 15.231 to            

                                                                                

2   15.246.                                                                     

                                                                                

3       Sec. 11.  The  council  authority shall do all of the                       

                                                                                

4   following:                                                                  

                                                                                

5       (a) Advise the director, the legislature, and the governor on               

                                                                                

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

                                                                                

7   and other matters relevant to the state exposition and                      

                                                                                

8   fairgrounds.                                                                

                                                                                

9       (b) Advise the  director  governor relative to the selection                

                                                                                

10  of a manager.  before selection.                                            

                                                                                

11      (c) Advise the director with regard to utilization of the                   

                                                                                

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

                                                                                

13  for the annual state fair, and on any other matter which the                

                                                                                

14  council  authority may regard as appropriate.                              

                                                                                

15      (d) Promote, encourage, and assist  the director and  the                   

                                                                                

16  manager in conducting exhibits or other events at the state                 

                                                                                

17  exposition and fairgrounds that enhance agricultural, industrial,           

                                                                                

18  commercial, recreational, educational, or cultural pursuits or              

                                                                                

19  government service to citizens.                                             

                                                                                

20      (e) Perform other functions the director or the manager                     

                                                                                

21  requests.                                                                   

                                                                                

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

                                                                                

23  department  authority may enter into licensing agreements with             

                                                                                

24  concessionaires permitting games of skill which shall be                    

                                                                                

25  conducted in accordance with the following criteria:                        

                                                                                

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

                                                                                

27  on the part of the participant.                                             


                                                                                

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

                                                                                

2   participants.                                                               

                                                                                

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

                                                                                

4   winning depends primarily upon fortuitous or accidental                     

                                                                                

5   circumstances beyond the control of the participant including               

                                                                                

6   games such as roulette, beano, cards, dice, or wheels of fortune            

                                                                                

7   nor is  and the game  one which includes  does not include a               

                                                                                

8   mechanical or physical device  which  that directly or indirectly           

                                                                                

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

                                                                                

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

                                                                                

11  each participant shall be in attendance at the time the game is             

                                                                                

12  played and shall actively participate throughout the entire game            

                                                                                

13  by personally designating his or her target, goal, or desired               

                                                                                

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

                                                                                

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

                                                                                

16  participant shall be randomly selected.  , and a  The                       

                                                                                

17  distribution of prizes shall be made in the presence of each                

                                                                                

18  participant at the time the game is played.                                 

                                                                                

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

                                                                                

20  convertible into cash, directly or indirectly.                              

                                                                                

21      (2) 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, consistent with the criteria established in subsection              

                                                                                

25  (1) to regulate the conduct of games of skill during the annual             

                                                                                

26  state fair and to protect the public from unauthorized or                   

                                                                                

27  dishonest practices in conducting those games.                              


                                                                                

1       (3) The department may, after  a  an administrative hearing                 

                                                                                

2   held pursuant to  Act No.  306 of the Public Acts of 1969, as               

                                                                                

3   amended  the administrative procedures act of 1969, 1969 PA 306,            

                                                                                

4   MCL 24.201 to 24.328, revoke the licensing agreement of a                   

                                                                                

5   concessionaire if the department determines that the public is              

                                                                                

6   being defrauded, or that this act or a rule promulgated pursuant            

                                                                                

7   to this act is being violated.                                              

                                                                                

8       (4) The department may promulgate rules pursuant to  Act                    

                                                                                

9   No.  306 of the Public Acts of 1969, as amended  the                        

                                                                                

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

                                                                                

11  24.328, to permit the operation of a bingo or a millionaire party           

                                                                                

12  permitted and licensed under  Act No.  382 of the Public Acts of            

                                                                                

13  1972, as amended, being sections 432.101 to 432.120 of the                  

                                                                                

14  Michigan Compiled Laws  the Traxler-McCauley-Law-Bowman bingo               

                                                                                

15  act, 1972 PA 382, MCL 432.101 to 432.120.  The  department                  

                                                                                

16  authority may lease facilities as a location within or at which             

                                                                                

17  an organization qualified and licensed under  Act No.  382 of the           

                                                                                

18  Public Acts of 1972, as amended,  that act may conduct bingo or a           

                                                                                

19  millionaire party.                                                          

                                                                                

20      Sec. 13.  (1) Sections 301 to  315 of Act No.  328 of the                   

                                                                                

21  Public Acts of 1931, as amended, being sections 750.301 to                  

                                                                                

22  750.315 of the Michigan Compiled Laws, shall  315a of the                   

                                                                                

23  Michigan penal code, 1931 PA 328, MCL 750.301 to 750.315a, do not           

                                                                                

24  apply to a person who conducts or participates in a game of skill           

                                                                                

25  pursuant to section 12 or the rules promulgated under that                  

                                                                                

26  section.                                                                    

                                                                                

27      (2) The department may lease its facilities as a location                   


                                                                                

1   within or at which an organization qualified and licensed under             

                                                                                

2   Act No.  382 of the Public Acts of 1972, as amended, being                 

                                                                                

3   sections 432.101 to 432.120 of the Michigan Compiled Laws  the              

                                                                                

4   Traxler-McCauley-Law-Bowman bingo act, 1972 PA 382, MCL 432.101             

                                                                                

5   to 432.120, may conduct bingo.                                              

                                                                                

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

                                                                                

7   created within the state treasury.  The fund shall be                       

                                                                                

8   administered by the authority.                                              

                                                                                

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

                                                                                

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

                                                                                

11  earnings from fund investments.  The state treasurer may receive            

                                                                                

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

                                                                                

13  All of the following shall be deposited in the fund:                       

                                                                                

14      (a) Money appropriated from the general fund for the purpose                

                                                                                

15  of holding a state fair that is unencumbered and unspent at the             

                                                                                

16  close of the fiscal year.  (b)  Money generated from the                    

                                                                                

17  operation of activities authorized by this act shall be deposited           

                                                                                

18  into the fund.                                                              

                                                                                

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

                                                                                

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

                                                                                

21      (4) The  department  authority shall submit an annual report                

                                                                                

22  to the legislature and the  council  department showing the                 

                                                                                

23  amount of money received under this act and how that money was              

                                                                                

24  spent.                                                                      

                                                                                

25      (5)  Upon appropriation,  The money in the fund shall be                    

                                                                                

26  expended pursuant to appropriation of the legislature by the                

                                                                                

27  director, with the advice of the council,  authority to provide            


                                                                                

1   for an annual state fair, the maintenance of the state exposition           

                                                                                

2   and fairgrounds, and for any purpose authorized in section 6.               

                                                                                

3       Sec. 15a.  The  department  authority may demolish or permit                

                                                                                

4   the demolition of any building or structure on the state                    

                                                                                

5   exposition and fairgrounds that is determined by the  director              

                                                                                

6   authority to be unsuitable for uses consistent with the holding             

                                                                                

7   of the state fair.