HOUSE BILL No. 4205

 

February 3, 2005, Introduced by Rep. Virgil Smith and referred to the Committee on Agriculture.

 

     A bill to amend 1978 PA 361, entitled

 

"Michigan exposition and fairgrounds act,"

 

by amending sections 6 and 9 (MCL 285.166 and 285.169), as amended

 

by 2004 PA 468.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

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

 

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

 

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

 

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

 

demonstrate agricultural, industrial, commercial, educational,

 

entertainment, tourism, technological, cultural, and recreational

 

pursuits.

 

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

 

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


 

exposition and fairgrounds for purposes considered by the 

 

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

 

other exhibits or events. The authority may determine and impose

 

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

 

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

 

authority may lease properties to private and public organizations

 

for a period not to exceed 30 years for consideration established

 

by the authority. The authority may grant leases for all or a

 

portion of the state exposition and fairgrounds to private and

 

public organizations, conditional upon construction and

 

improvements according to plans approved by the authority to be

 

financed by the lessees, for terms not to exceed 30 years. The 

 

authority may grant an extension of the lease term for not more

 

than an additional 20 years. The use of the state exposition and

 

fairgrounds, a portion of the state exposition and fairgrounds, or

 

a building on the state exposition and fairgrounds shall not

 

interfere with the preparation for or holding of the state fair and

 

other exhibits or events. Land, a building, or other property that

 

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

 

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

 

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

 

lease or contract.

 

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

 

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

 

conduct the annual state fair, exhibits, or other events, at the

 

state exposition and fairgrounds that enhance agricultural,

 

industrial, commercial, recreational, educational, entertainment,


 

tourism, technological, or cultural pursuits or government services

 

to citizens.

 

     (2) The authority may enter into cooperative agreements,

 

contracts, or other agreements with 1 or more governmental entities

 

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

 

entity to assist the authority with carrying out its duties under

 

this act and as otherwise provided by law.

 

     (3) In the time period during which the annual state fair is

 

not being conducted, the authority is prohibited from conducting or

 

allowing either of the following activities:

 

     (a) Except as may otherwise be allowed under sections 12 and

 

13, gaming as defined in section 2 of the Initiated Law of 1996,

 

MCL 432.202, and racing and pari-mutuel wagering conducted under

 

the horse racing law of 1995, 1995 PA 279, MCL 431.301 to 431.336.

 

     (b) Outdoor automobile or other motorized vehicle racing.

 

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

 

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

 

section. The authority board shall consist of the following

 

members:

 

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

 

officio voting member.

 

     (b) The director of the department of agriculture or a

 

designated representative as an ex officio voting member.

 

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

 

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

 

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

 

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


 

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

 

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

 

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

 

governor shall appoint the 9 appointed members to serve on the

 

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

 

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

 

appointment to the authority board if otherwise qualified. It is

 

the intent of the legislature that the members of the authority

 

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

 

members shall be chosen from the following categories:

 

     (i) Three members representing agricultural interests.

 

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

 

     (iii) Two members of the general public.

 

     (iv) One member representing organized labor.

 

     (v) One member representing the business community.

 

     (vi) One member representing county fairs.

 

     (2) Of the 9 appointed members meeting the criteria of the

 

categories described in subsection (1)(c)(i) through (vi), at least 1

 

member from any category shall be a resident of each of the

 

following:

 

     (a) Detroit.

 

     (b) Ferndale.

 

     (c) Hazel Park.

 

     (3)  (2)  Upon appointment to the authority board under

 

subsection (1), and upon the taking and filing of the

 

constitutional oath of office, a member of the authority board

 

shall enter the office and exercise the duties of the office.


 

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

 

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

 

a member of the authority board by appointment by and with the

 

advice and consent of the senate. A vacancy shall be filled for the

 

balance of the unexpired term. A member of the authority board

 

shall hold office until a successor has been appointed and has

 

qualified.

 

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

 

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

 

to 15.330. A member of the authority board or an officer, employee,

 

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

 

or her position in a nonpartisan manner, with good faith, and with

 

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

 

prudent person would exercise under similar circumstances in a like

 

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

 

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

 

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

 

counsel for the authority, upon the report of an independent

 

appraiser selected with reasonable care by the authority board, or

 

upon financial statements of the authority represented to the

 

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

 

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

 

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

 

a certified public accountant or the firm of the accountants fairly

 

to reflect the financial condition of the authority.

 

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

 

and procedures for conducting its business. Six members of the


 

authority board constitute a quorum for the transaction of

 

business. An action of the authority board requires a concurring

 

vote by 6 members of the authority board.

 

     (7)  (6)  Authority board members shall serve without

 

compensation and shall receive reimbursement for actual and

 

necessary expenses.

 

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

 

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

 

chairperson at the pleasure of the governor. The authority board

 

shall annually select other officers from its membership.

 

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

 

agriculture shall not serve as officers of the authority board.

 

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

 

times per year.

 

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

 

dedicated to soliciting input from the local neighborhood advisory

 

council established under section 15b, the surrounding communities,

 

and local units of government.