Bill Summary – FastDemocracy

Enrolled Copy                                                                        S.B. 187
                             STATE FAIR PARK AMENDMENTS
                                       2023 GENERAL SESSION
                                            STATE OF UTAH
                                Chief Sponsor: Scott D. Sandall
                                   House Sponsor: Mike Schultz
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 LONG TITLE
 General Description:
        This bill modifies provisions relating to the state fair park.
 Highlighted Provisions:
        This bill:
        < provides for the dissolution of the Utah State Fair Corporation;
        < creates the State Fair Park Authority as a successor entity to the Utah State Fair
 Corporation, with similar but modified duties;
        < authorizes the Authority to impose a special event sales tax;
        < requires the State Tax Commission to distribute to the authority certain sales tax
 revenue generated from a hotel on fair park land;
        < makes property on state fair park land subject to the privilege tax and provides for
 revenue from the tax and from personal property tax to be paid to the Authority;
        < modifies provisions relating to the operation, maintenance, construction, and
 modification of buildings and facilities on state fair park land;
        < authorizes the Authority to issue bonds and enacts provisions relating to the bonds;
 and
        < makes technical changes.
 Money Appropriated in this Bill:
        None
 Other Special Clauses:
        None
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 Utah Code Sections Affected:
 AMENDS:
        11-36a-202, as last amended by Laws of Utah 2022, Chapter 406
        59-2-924, as last amended by Laws of Utah 2022, Chapters 237, 239, and 433
        59-4-101, as last amended by Laws of Utah 2020, Chapter 105
        63C-25-101, as enacted by Laws of Utah 2022, Chapter 207 and last amended by
 Coordination Clause, Laws of Utah 2022, Chapter 207
        63E-1-102, as last amended by Laws of Utah 2022, Chapters 44 and 63
        63J-7-102, as last amended by Laws of Utah 2022, Chapters 224, 451, and 456
        67-3-12, as last amended by Laws of Utah 2022, Chapters 169, 205, and 274
 ENACTS:
        11-68-401, Utah Code Annotated 1953
        11-68-501, Utah Code Annotated 1953
        11-68-502, Utah Code Annotated 1953
        11-68-503, Utah Code Annotated 1953
        11-68-504, Utah Code Annotated 1953
        11-68-505, Utah Code Annotated 1953
        11-68-506, Utah Code Annotated 1953
        59-12-2301, Utah Code Annotated 1953
        59-12-2302, Utah Code Annotated 1953
        59-12-2303, Utah Code Annotated 1953
        59-12-2304, Utah Code Annotated 1953
        59-12-2305, Utah Code Annotated 1953
 RENUMBERS AND AMENDS:
        11-68-101, (Renumbered from 63H-6-102, as last amended by Laws of Utah 2020,
 Chapter 152)
        11-68-201, (Renumbered from 63H-6-103, as last amended by Laws of Utah 2022,
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 Chapter 421)
        11-68-202, (Renumbered from 63H-6-108, as last amended by Laws of Utah 2022,
 Chapter 421)
        11-68-301, (Renumbered from 63H-6-104, as last amended by Laws of Utah 2020,
 Chapters 352 and 373)
        11-68-302, (Renumbered from 63H-6-105, as renumbered and amended by Laws of
 Utah 2011, Chapter 370)
        11-68-402, (Renumbered from 63H-6-109, as enacted by Laws of Utah 2016, Chapter
 301)
        11-68-403, (Renumbered from 63H-6-107, as last amended by Laws of Utah 2016,
 Chapter 301)
        11-68-601, (Renumbered from 63H-6-106, as renumbered and amended by Laws of
 Utah 2011, Chapter 370)
 REPEALS:
        63H-6-101, as last amended by Laws of Utah 2016, Chapter 301
        63H-6-201, as enacted by Laws of Utah 2016, Chapter 301
        63H-6-202, as enacted by Laws of Utah 2016, Chapter 301
        63H-6-203, as enacted by Laws of Utah 2016, Chapter 301
        63H-6-204, as enacted by Laws of Utah 2016, Chapter 301
        63H-6-205, as enacted by Laws of Utah 2016, Chapter 301
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 Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 11-36a-202 is amended to read:
        11-36a-202. Prohibitions on impact fees.
        (1) A local political subdivision or private entity may not:
        (a) impose an impact fee to:
        (i) cure deficiencies in a public facility serving existing development;
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          (ii) raise the established level of service of a public facility serving existing
 development; or
          (iii) recoup more than the local political subdivision's or private entity's costs actually
 incurred for excess capacity in an existing system improvement;
          (b) delay the construction of a school or charter school because of a dispute with the
 school or charter school over impact fees; or
          (c) impose or charge any other fees as a condition of development approval unless
 those fees are a reasonable charge for the service provided.
          (2) (a) Notwithstanding any other provision of this chapter, a political subdivision or
 private entity may not impose an impact fee:
          (i) on residential components of development to pay for a public safety facility that is a
 fire suppression vehicle;
          (ii) on a school district or charter school for a park, recreation facility, open space, or
 trail;
          (iii) on a school district or charter school unless:
          (A) the development resulting from the school district's or charter school's
 development activity directly results in a need for additional system improvements for which
 the impact fee is imposed; and
          (B) the impact fee is calculated to cover only the school district's or charter school's
 proportionate share of the cost of those additional system improvements;
          (iv) to the extent that the impact fee includes a component for a law enforcement
 facility, on development activity for:
          (A) the Utah National Guard;
          (B) the Utah Highway Patrol; or
          (C) a state institution of higher education that has its own police force;
          (v) on development activity on [the state] fair park land, as defined in Section
 [63H-6-102] 11-68-101; or
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           (vi) on development activity that consists of the construction of an internal accessory
 dwelling unit, as defined in Section 10-9a-530, within an existing primary dwelling.
           (b) (i) Notwithstanding any other provision of this chapter, a political subdivision or
 private entity may not impose an impact fee on development activity that consists of the
 construction of a school, whether by a school district or a charter school, if:
           (A) the school is intended to replace another school, whether on the same or a different
 parcel;
           (B) the new school creates no greater demand or need for public facilities than the
 school or school facilities, including any portable or modular classrooms that are on the site of
 the replaced school at the time that the new school is proposed; and
           (C) the new school and the school being replaced are both within the boundary of the
 local political subdivision or the jurisdiction of the private entity.
           (ii) If the imposition of an impact fee on a new school is not prohibited under
 Subsection (2)(b)(i) because the new school creates a greater demand or need for public
 facilities than the school being replaced, the impact fee shall be based only on the demand or
 need that the new school creates for public facilities that exceeds the demand or need that the
 school being replaced creates for those public facilities.
           (c) Notwithstanding any other provision of this chapter, a political subdivision or
 private entity may impose an impact fee for a road facility on the state only if and to the extent
 that:
           (i) the state's development causes an impact on the road facility; and
           (ii) the portion of the road facility related to an impact fee is not funded by the state or
 by the federal government.
           (3) Notwithstanding any other provision of this chapter, a local political subdivision
 may impose and collect impact fees on behalf of a school district if authorized by Section
 11-36a-206.
           Section 2. Section 11-68-101, which is renumbered from Section 63H-6-102 is
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 renumbered and amended to read:
                       CHAPTER 68. STATE FAIR PARK AUTHORITY ACT
                                        Part 1. General Provisions
         [63H-6-102].            11-68-101. Definitions.
         As used in this chapter:
         (1) "Authority" means the State Fair Park Authority, created in Section 11-68-201.
         [(1)] (2) "Board" means the authority board [of directors of the corporation], created in
 Section 11-68-301.
         [(2)] (3) "Business related experience" means at least three years of professional
 experience in business administration, marketing, advertising, economic development, or a
 related field.
         [(3)] (4) "Capital development projects" means the same as [capital development
 project, as] that term is defined in Section 63A-5b-401.
         [(4) "Capital improvements" means the same as that term is defined in Section
 63A-5b-401.]
         [(5) "Corporation" means the Utah State Fair Corporation created by this chapter.]
         [(6) "Corporation bond" means a bond issued by the corporation in accordance with
 Part 2, Bonding Authority.]
         (5) "Development" means:
         (a) the demolition, construction, reconstruction, modification, expansion, or
 improvement of a building, utility, infrastructure, landscape, parking lot, park, trail,
 recreational amenity, or other facility; and
         (b) the planning of, arranging for, or participation in any of the activities listed in
 Subsection (5)(a).
         [(7)] (6) "Division" means the Division of Facilities Construction and Management
 created in Section 63A-5b-301.
         [(8)] (7) "Executive director" means the executive director hired by the board [in
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 accordance with Section 63H-6-105] under Section 11-68-302.
          (8) "Fair corporation" means the Utah State Fair Corporation, created by Laws of Utah
 1995, Chapter 260.
          (9) (a) ["State fair park"] "Fair park land" means the property owned by the state
 located at:
          (i) 155 North 1000 West, Salt Lake City, Utah, consisting of approximately 50 acres;
          (ii) 1139 West North Temple, Salt Lake City, Utah, consisting of approximately 10.5
 acres; and
          (iii) 1220 West North Temple, Salt Lake City, Utah, consisting of approximately two
 acres.
          [(b) "State fair park" includes each building and each improvement on the property
 described in Subsection (9)(a) that is owned by the state.]
          (b) "Fair park land" includes any land acquired by the authority under Subsection
 11-68-201(6)(i).
          Section 3. Section 11-68-201, which is renumbered from Section 63H-6-103 is
 renumbered and amended to read:
                                     Part 2. State Fair Park Authority
          [63H-6-103].            11-68-201. State Fair Park Authority -- Legal status --
 Powers.
          (1) There is created [an independent public nonprofit corporation known as the "Utah
 State Fair Corporation."] the State Fair Park Authority.
          [(2) The board shall file articles of incorporation for the corporation with the Division
 of Corporations and Commercial Code.]
          [(3) The corporation, subject to this chapter, has all powers and authority permitted
 nonprofit corporations by law.]
          (2) The authority is:
          (a) an independent, nonprofit, separate body corporate and politic, with perpetual
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 succession;
         (b) a political subdivision of the state; and
         (c) a public corporation, as defined in Section 63E-1-102.
         (3) (a) The fair corporation is dissolved and ceases to exist, subject to any winding
 down and other actions necessary for a transition to the authority.
         (b) The authority:
         (i) replaces and is the successor to the fair corporation;
         (ii) succeeds to all rights, obligations, privileges, immunities, and assets of the fair
 corporation; and
         (iii) shall fulfill and perform all contractual and other obligations of the fair
 corporation.
         (c) The board shall take all actions necessary and appropriate to wind down the affairs
 of the fair corporation as quickly as practicable and to make a transition from the fair
 corporation to the authority.
         (4) The [corporation] authority shall:
         (a) manage, supervise, and control:
         (i) all activities relating to the annual exhibition described in Subsection (4)(j); and
         (ii) except as otherwise provided by statute, all state expositions, including setting the
 time, place, and purpose of any state exposition;
         (b) for public entertainment, displays, and exhibits or similar events held at the state
 fair park:
         (i) provide, sponsor, or arrange the events;
         (ii) publicize and promote the events; and
         (iii) secure funds to cover the cost of the exhibits from:
         (A) private contributions;
         (B) public appropriations;
         (C) admission charges; and
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          (D) other lawful means;
          (c) acquire and designate exposition sites;
          (d) use generally accepted accounting principles in accounting for the [corporation's]
 authority's assets, liabilities, and operations;
          (e) seek corporate sponsorships for the state fair park or for individual buildings or
 facilities [within the] on fair park land;
          (f) work with county and municipal governments, the Salt Lake Convention and
 Visitor's Bureau, the Utah [Travel Council] Office of Tourism, and other entities to develop
 and promote expositions and the use of [the state] fair park land;
          (g) develop and maintain a marketing program to promote expositions and the use of
 [the state] fair park land;
          (h) in accordance with provisions of this [part] chapter, operate and maintain [the state]
 state-owned buildings and facilities on fair park land, including the physical appearance and
 structural integrity of [the state fair park and the] those buildings [located at the state fair park]
 and facilities;
          (i) prepare an economic development plan for the [state] fair park land;
          (j) hold an annual exhibition on fair park land that:
          (i) is called the state fair or a similar name;
          (ii) promotes and highlights agriculture throughout the state;
          (iii) includes expositions of livestock, poultry, agricultural, domestic science,
 horticultural, floricultural, mineral and industrial products, manufactured articles, and domestic
 animals that, in the [corporation's] board's opinion, will best stimulate agricultural, industrial,
 artistic, and educational pursuits and the sharing of talents among the people of [Utah] the
 state;
          (iv) includes the award of premiums for the best specimens of the exhibited articles
 and animals;
          (v) permits competition by livestock exhibited by citizens of other states and territories
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 of the United States; and
         (vi) is arranged according to plans approved by the board;
         (k) fix the conditions of entry to the annual exhibition described in Subsection (4)(j);
 and
         (l) publish a list of premiums that will be awarded at the annual exhibition described in
 Subsection (4)(j) for the best specimens of exhibited articles and animals.
         (5) In addition to the annual exhibition described in Subsection (4)(j), the [corporation]
 authority may hold other exhibiti