1.1                          A bill for an act 
  1.2             relating to the state agricultural society; 
  1.3             authorizing establishment of a nonprofit corporation; 
  1.4             changing certain membership provisions; amending 
  1.5             Minnesota Statutes 2000, section 37.03, subdivision 1; 
  1.6             proposing coding for new law in Minnesota Statutes, 
  1.7             chapter 37. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2000, section 37.03, 
  1.10  subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [MEMBERS.] Members of the state 
  1.12  agricultural society must be citizens of this state.  The 
  1.13  membership is as follows: 
  1.14     (a) Three delegates chosen annually by each agricultural 
  1.15  society or association in the state which maintains an active 
  1.16  existence, holds annual fairs, and is entitled to share in the 
  1.17  state appropriation under the provisions of section 38.02.  If 
  1.18  one of those societies or associations fails to choose 
  1.19  delegates, then its president, secretary, and treasurer, by 
  1.20  virtue of their offices, are its delegates.  If two fairs 
  1.21  receiving state aid are operating in one county, each delegate 
  1.22  from each society or association is entitled to one-half vote at 
  1.23  regular or special meetings of the state society.  
  1.24     (b) One delegate appointed by the county board of each 
  1.25  county in which no county or district agricultural society 
  1.26  exists.  
  2.1      (c) Individuals elected by the society as honorary members 
  2.2   for having performed eminent services in agriculture, 
  2.3   horticulture, or related arts and sciences or long and faithful 
  2.4   service in or benefits to the society.  Honorary members must be 
  2.5   elected by two-thirds vote at any annual meeting.  The number of 
  2.6   honorary members may not exceed the society's membership and 
  2.7   only one honorary member may be elected annually.  Each honorary 
  2.8   member is entitled to one vote. 
  2.9      (d) Two elected delegates and the president may represent 
  2.10  each of the following societies and associations:  Red River 
  2.11  Valley Winter Shows, the Minnesota State Horticultural Society, 
  2.12  the State Dairyman's Association, the Minnesota Dairy Goat 
  2.13  Association, the Minnesota Honey Producers Association, Inc., 
  2.14  the Minnesota Livestock Breeders' Association, the Minnesota 
  2.15  Crop Improvement Association, the Minnesota Pork Producers 
  2.16  Association, the Minnesota Lamb and Wool Producers Association, 
  2.17  the Minnesota Horse Breeders' Association, the Minnesota 
  2.18  Veterinary Medical Association, the Minnesota Cattle Breeders' 
  2.19  Association, the Central Livestock Association, the Minnesota 
  2.20  State Poultry Association, the Farm Equipment Association, the 
  2.21  North Central Florist Association, the Minnesota Garden Flower 
  2.22  Society, the State Fair Exhibitors' Organization, the Minnesota 
  2.23  Federation of County Fairs, the State Forestry Association, the 
  2.24  Minnesota Horse Council, Minnesota Nurserymen's Association, 
  2.25  Minnesota Apple Growers' Association, State Grange of Minnesota, 
  2.26  Minnesota Farmers' Union, American Dairy Association of 
  2.27  Minnesota, and the Minnesota Farm Bureau Federation.  
  2.28     (e) The following societies and associations are entitled 
  2.29  to one delegate each:  Central Minnesota Vegetable Growers 
  2.30  Association, the Minnesota Fruit and Vegetable Growers' 
  2.31  Association, Minnesota Shorthorn Breeders' Association, the 
  2.32  Minnesota Milking Shorthorn Association, Minnesota Guernsey 
  2.33  Breeders' Association, Minnesota Jersey Cattle Club, Minnesota 
  2.34  Holstein Association, Minnesota Hereford Association, Minnesota 
  2.35  Aberdeen Angus Breeders', Minnesota Red Polled Breeders', 
  2.36  Minnesota Ayreshire Breeders' Association, Minnesota Brown Swiss 
  3.1   Association, Minnesota Poland China Breeders' Association, 
  3.2   Minnesota Duroc Breeders', Minnesota Chester White Association, 
  3.3   Minnesota Turkey Growers' Association, Minnesota Gladiolus 
  3.4   Society, Minnesota Hampshire Association, Minnesota Suffolk 
  3.5   Association, North American Dairy Sheep Association, and the 
  3.6   Minnesota Berkshire Association. 
  3.7      All of these (f) The societies and associations listed in 
  3.8   paragraphs (d) and (e) must be active and statewide in their 
  3.9   scope and operation, hold annual meetings, and be incorporated 
  3.10  under the laws of the state before they are entitled to a 
  3.11  delegate.  The societies and associations must file with the 
  3.12  secretary of state, on or before December 20, a report showing 
  3.13  that the society or association has held a regular annual 
  3.14  meeting for that year, a summary of its financial transactions 
  3.15  for the current year, and an affidavit of the president and 
  3.16  secretary that it has a paid-up membership of at least 25.  On 
  3.17  or before December 31, the secretary of state shall certify to 
  3.18  the secretary of the state agricultural society the names of the 
  3.19  societies or associations that have complied with these 
  3.20  provisions.  
  3.21     (g) If a society or association ceases to exist or 
  3.22  otherwise fails to comply with the requirements of paragraph 
  3.23  (f), its membership in the state agricultural society and its 
  3.24  right to delegates is terminated and it may be replaced by 
  3.25  another society or association representing the same or similar 
  3.26  interests and chosen by a majority vote of the members of the 
  3.27  society at its next annual meeting. 
  3.28     (f) (h) The members of the board of managers of the state 
  3.29  agricultural society are members of the society and entitled to 
  3.30  one vote each. 
  3.31     Sec. 2.  [37.27] [FAIR FOUNDATION.] 
  3.32     The state agricultural society may establish a nonprofit 
  3.33  corporation to be operated exclusively for charitable purposes 
  3.34  as contemplated by sections 170(c)(2) and 501(c)(3) of the 
  3.35  United States Internal Revenue Code.  Subject to those sections, 
  3.36  the corporation must be organized and operated exclusively for 
  4.1   the benefit and to carry out the purposes of the state 
  4.2   agricultural society for so long as the state agricultural 
  4.3   society is and remains an organization as described in section 
  4.4   509(a)(1) or 509(a)(2) of the Internal Revenue Code.  The 
  4.5   corporation shall solicit, receive, hold, invest, and contribute 
  4.6   funds and property for the use and benefit of the state 
  4.7   agricultural society in a manner consistent with the public good 
  4.8   and primarily for capital expenditures and other needs not 
  4.9   funded by other means.  The corporation may be known as the 
  4.10  Minnesota state fair foundation.