MICHIGAN STATE FAIR DESIGNATION

House Bill 5719

Sponsor:  Rep. Edward McBroom

Committee:  Tourism

Complete to 9-10-14

A SUMMARY OF HOUSE BILL 5719 AS INTRODUCED 8-13-14

House Bill 5719 would create a new act, the Michigan State Fair Act, which would provide a process for a fair to be designated as the Michigan State Fair.  The bill would repeal the current Michigan Exposition and Fairgrounds Authority Act (PA 361 of 1978).

The bill would not apply to or affect the operation of the Upper Peninsula State Fair.

Under the bill, the Commission of Agriculture and Rural Development would be able to designate a statewide fair meeting certain requirements as the official Michigan State Fair, starting in 2015. To be eligible for the designation, a person, defined as an individual, partnership, corporation, association, governmental entity, or other legal entity, must apply to the commission and meet all of the following:

o                   Be open to participants from around the world and provide exhibits related to agriculture, commerce, and industry.

o                   Include a junior show that is open to all youth from this state.

o                   Showcase agriculture, commerce, and industry throughout this state.

o                   Promote educational exhibits related to agriculture, commerce, and industry in this state.

o                   Promote and highlight youth from rural and farm communities by providing them opportunities to demonstrate farming skills and will encourage youth to consider careers in farming and agriculture.

o                   Have operated a statewide fair for at least two years prior to submitting an application.

[The only fair that appears to meet this criteria is the Fifth-Third Michigan State Fair, which began in 2012 as the Great Lakes State Fair following the end state-sponsored Michigan State Fair in 2009. It is operated by Michigan State Fair, LLC, a private entity. However, because "statewide fair" is not defined in the bill, the Western Michigan State Fair, held in Ludington, and the Eastern Michigan State Fair, held in Imlay City, could be eligible as well.]

Once designated, the fair may then use the name "Michigan State Fair" in its promotional material. The designation is non-transferrable, and the fair must make an annual presentation to the commission at a regularly scheduled commission meeting on the fair's operations and efforts to promote agriculture in Michigan. The person also would be obligated to notify the commission if it intended to no longer hold the Michigan State Fair.

If the commission determines the person authorized to hold the state fair is not in compliance with this act and is not able to bring the fair into compliance within a two-year period, the commission may revoke the designation and accept new applications to designate another fair as the Michigan State Fair. Unless a fair is designated as the Michigan State Fair, a person would be prohibited from designating or promoting its fair or other event as a "Michigan State Fair," a "state fair" for Michigan, or any other similar description, though fairs with those names which are in operation at the time the bill goes into effect would be allowed to continue using those terms in its name, as would the Upper Peninsula State Fair, which is authorized under PA 87 of 1927. This bill would not apply to or affect the operation of the UP State Fair.

FISCAL IMPACT:

House Bill 5719, as introduced, would not have a significant fiscal impact on the state or local units of government.

                                                                                           Legislative Analyst:   Josh Roesner

                                                                                                  Fiscal Analyst:   Paul Holland

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.