1.1                          A bill for an act 
  1.2             relating to county agricultural societies; modifying 
  1.3             provisions relating to county and regional fairs; 
  1.4             amending Minnesota Statutes 2002, sections 38.04; 
  1.5             38.12; 38.14; 38.15; 38.16; Minnesota Statutes 2003 
  1.6             Supplement, section 38.02, subdivisions 1, 3; 
  1.7             repealing Minnesota Statutes 2002, sections 38.02, 
  1.8             subdivision 2; 38.13. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.11  38.02, subdivision 1, is amended to read: 
  1.12     Subdivision 1.  [PRO RATA DISTRIBUTION; CONDITIONS.] (a) 
  1.13  Money appropriated to aid county and district agricultural 
  1.14  societies and associations shall be distributed among all county 
  1.15  and district agricultural societies or associations in the state 
  1.16  pro rata, upon condition that each of them has complied with the 
  1.17  conditions specified in paragraph (b). 
  1.18     (b) To be eligible to participate in the distribution of 
  1.19  aid, each agricultural society or association shall have: 
  1.20     (1) held an annual fair for each of the three years last 
  1.21  past, unless prevented from doing so because of a calamity or an 
  1.22  epidemic declared by the Board of Health as defined in section 
  1.23  145A.02, subdivision 2, or the state commissioner of health, or 
  1.24  the board of animal health to exist; 
  1.25     (2) an annual membership of 25 15 or more; 
  1.26     (3) paid out to exhibitors for premiums awarded at the last 
  1.27  fair held a sum not less than the amount to be received from the 
  2.1   state; 
  2.2      (4) published and distributed, or made available on an 
  2.3   Internet Web site, not less than three weeks before the opening 
  2.4   day of the fair a premium list, listing all items or articles on 
  2.5   which premiums are offered and the amounts of such premiums and 
  2.6   shall have paid premiums pursuant to the amount shown for each 
  2.7   article or item to be exhibited; provided that premiums for 
  2.8   school exhibits may be advertised in the published premium list 
  2.9   by reference to a school premium list prepared and circulated 
  2.10  during the preceding school year; and shall have collected all 
  2.11  fees charged for entering an exhibit at the time the entry was 
  2.12  made and in accordance with schedule of entry fees to be charged 
  2.13  as published in the premium list; 
  2.14     (5) paid not more than one premium on each article or item 
  2.15  exhibited, excluding championship or sweepstake awards, and 
  2.16  excluding the payment of open class premium awards to 4H Club 
  2.17  exhibits which at this same fair had won a first prize award in 
  2.18  regular 4H Club competition; and 
  2.19     (6) submitted its records and annual report of premiums 
  2.20  paid to the commissioner of agriculture on a form provided by 
  2.21  the commissioner of agriculture, on or before the first day of 
  2.22  November of the year in which the fair was held. 
  2.23     (c) All payments authorized under the provisions of this 
  2.24  chapter shall be made only upon the presentation by the 
  2.25  commissioner of agriculture with the commissioner of finance of 
  2.26  a statement of premium allocations.  As used herein the term 
  2.27  premium shall mean the cash award paid to an exhibitor for the 
  2.28  merit of an exhibit of livestock, livestock products, grains, 
  2.29  fruits, flowers, vegetables, articles of domestic science, 
  2.30  handicrafts, hobbies, fine arts, other products of a creative 
  2.31  nature, and articles made by school pupils, or the cash award 
  2.32  paid to the merit winner of events such as 4H Club or Future 
  2.33  Farmer contest, youth group contests, school spelling contests 
  2.34  and school current events contests, the award corresponding to 
  2.35  the amount offered in the advertised premium list referred to in 
  2.36  schedule 2.  Payments of awards for horse races, horse pulls, 
  3.1   tractor pulls, demolition derby, automobile or other racing, 
  3.2   jackpot premiums, ball games, musical contests, talent contests, 
  3.3   parades, and for amusement features for which admission is 
  3.4   charged, are specifically excluded from consideration as 
  3.5   premiums within the meaning of that term as used herein.  Upon 
  3.6   receipt of the statement by the commissioner of agriculture, the 
  3.7   commissioner of finance shall draw a voucher in favor of the 
  3.8   agricultural society or association for the amount to which it 
  3.9   is entitled under the provisions of this chapter.  The amount 
  3.10  shall be computed as follows:  On the first $750 premiums paid 
  3.11  by each society or association at the last fair held, the 
  3.12  society or association shall receive 100 percent reimbursement; 
  3.13  on the second $750 premiums paid, 80 percent; on the third $750 
  3.14  premiums paid, 60 percent; and on any sum in excess of $2,250, 
  3.15  40 percent.  The commissioner of finance shall make payments not 
  3.16  later than July 15 of the year following the calendar year in 
  3.17  which the annual fair was held to those agricultural societies 
  3.18  or associations entitled to payments under the provisions of 
  3.19  this chapter. 
  3.20     (d) If the total amount of state aid to which the 
  3.21  agricultural societies and associations are entitled under the 
  3.22  provisions of this chapter exceeds the amount of the 
  3.23  appropriation therefor, the amounts to which the societies or 
  3.24  associations are entitled shall be prorated so that the total 
  3.25  payments by the state will not exceed the appropriation. 
  3.26     Sec. 2.  Minnesota Statutes 2003 Supplement, section 38.02, 
  3.27  subdivision 3, is amended to read: 
  3.28     Subd. 3.  [CERTIFICATION, COMMISSIONER OF 
  3.29  AGRICULTURE ENTITLEMENT FOR PRO RATA DISTRIBUTION.] Any A county 
  3.30  or district agricultural society which has held its second 
  3.31  annual fair is entitled to share pro rata in the 
  3.32  distribution.  The commissioner of agriculture shall certify to 
  3.33  the secretary of the State Agricultural Society, within 30 days 
  3.34  after payments have been made, a list of all county or district 
  3.35  agricultural societies that have complied with this chapter, and 
  3.36  which are entitled to share in the appropriation.  All Payments 
  4.1   shall be based on reports submitted by agricultural societies 
  4.2   under subdivision 1, paragraph (b), clause (6). 
  4.3      Sec. 3.  Minnesota Statutes 2002, section 38.04, is amended 
  4.4   to read: 
  4.5      38.04 [ANNUAL MEETINGS; REPORTS.] 
  4.6      Every county agricultural society shall hold an annual 
  4.7   meeting for the election of officers and the transaction of 
  4.8   other business on or before the third Tuesday in November.  
  4.9   Service on the county agricultural society board or as an 
  4.10  officer of the board is not a public office.  Elected officials 
  4.11  of the state or its political subdivisions may serve on the 
  4.12  board or be elected as officers. 
  4.13     At the annual meeting, the society's secretary an officer 
  4.14  of the society shall make a report of its proceedings for the 
  4.15  preceding year; this report shall contain a statement of all 
  4.16  transactions at its fairs, the numbers of entries, the amount 
  4.17  and source of all money received, and and a financial statement 
  4.18  prepared in accordance with generally accepted accounting 
  4.19  principles.  The report must also list the amount paid out for 
  4.20  premiums and for other purposes, and show in detail its entire 
  4.21  receipts and expenditures during the year.  The report must 
  4.22  contain a separate accounting of any income received from the 
  4.23  operation of horse racing on which pari-mutuel betting is 
  4.24  conducted, and of the disposition of that income.  
  4.25     The treasurer shall make a comprehensive report of the 
  4.26  funds received, paid out, and on hand, and upon whose order 
  4.27  paid.  Each secretary shall cause a certified copy of the annual 
  4.28  report to be filed with the county recorder of the county and 
  4.29  the commissioner of agriculture on or before the first day of 
  4.30  November each year.  Reports of the society are public data 
  4.31  under chapter 13 and must be made available for inspection by 
  4.32  any person. 
  4.33     Sec. 4.  Minnesota Statutes 2002, section 38.12, is amended 
  4.34  to read: 
  4.35     38.12 [APPROPRIATIONS BY CERTAIN MUNICIPALITIES.] 
  4.36     The council of any city and the board of supervisors of any 
  5.1   town having fairs of county and district agricultural societies 
  5.2   or associations, who are members of the Minnesota state 
  5.3   agricultural society, held within or in close proximity to their 
  5.4   corporate limits or in close proximity thereto, are hereby 
  5.5   authorized and empowered to may appropriate for and pay money to 
  5.6   such the agricultural society or association annually a sum not 
  5.7   exceeding $1,000.  
  5.8      Sec. 5.  Minnesota Statutes 2002, section 38.14, is amended 
  5.9   to read: 
  5.10     38.14 [IN COUNTIES OF 150,000:  APPROPRIATIONS FOR COUNTY 
  5.11  FAIRS.] 
  5.12     Subdivision 1.  [CONDITIONS, PROCEDURES, BOND.] In any 
  5.13  county in this state now or hereafter having a population of 
  5.14  150,000, the A county board may annually appropriate not to 
  5.15  exceed $3,000, except that counties having more than 300,000 and 
  5.16  less than 450,000 inhabitants may appropriate not to exceed 
  5.17  $5,000, money to assist in maintaining a county fair, which fair 
  5.18  shall be under the management and control of managed by a county 
  5.19  agricultural society.  The appropriation shall be made either to 
  5.20  the treasurer of the society or to some other suitable person,.  
  5.21  but before the money is paid, the treasurer or other person 
  5.22  shall file with the county auditor a satisfactory bond in double 
  5.23  the sum of the appropriation, conditioned upon the faithful 
  5.24  disbursing and accounting for all of the funds so appropriated.  
  5.25  The funds so appropriated shall be used solely for the purpose 
  5.26  of obtaining, preparing, and arranging exhibits and paying 
  5.27  premiums to exhibitors.  The treasurer or other person to whom 
  5.28  the appropriation is paid shall, within four months after the 
  5.29  holding of any such aided annual fair, file with the county 
  5.30  auditor a verified and detailed report showing the name and 
  5.31  address of every person to whom any of the money was paid, 
  5.32  together with the date of payment, and a full description of the 
  5.33  purposes for which the money was so paid, and shall attach 
  5.34  thereto receipts and subvouchers for each payment so made and 
  5.35  return to the county treasurer all of the unexpended portion 
  5.36  thereof.  After the report, receipts, and subvouchers have been 
  6.1   audited by the county board and found to be correct, it may, by 
  6.2   resolution, release the treasurer or other person and the 
  6.3   sureties from all further liabilities under bond. 
  6.4      Subd. 2.  [EXCEPT RAMSEY COUNTY.] This section and section 
  6.5   38.15 do not apply to Ramsey County. 
  6.6      Sec. 6.  Minnesota Statutes 2002, section 38.15, is amended 
  6.7   to read: 
  6.8      38.15 [SITES AND BUILDINGS.] 
  6.9      The county board in any such county may also annually 
  6.10  appropriate such further sum as it may desire, not exceeding 
  6.11  $7,500, money for the purpose of procuring a suitable site and 
  6.12  the erection of erecting on it a suitable county building 
  6.13  thereon, for the building or repairing of a race track and for 
  6.14  grading and improving the grounds, to be used in connection with 
  6.15  such a county fair, but the site and the building and 
  6.16  improvements shall be and remain the property of the county, and 
  6.17  the annual appropriation shall be used only for the purpose 
  6.18  of so acquiring the site and building and grading and for the 
  6.19  necessary care, repair, maintenance, and upkeep thereof.  In any 
  6.20  county in this state now or hereafter having a population in 
  6.21  excess of 150,000 and an area of more than 5,000 square miles, 
  6.22  the county agricultural society may expend funds appropriated to 
  6.23  it for the year 1957 for the payment of debts and liabilities 
  6.24  incurred during the year 1956 in the construction of county fair 
  6.25  buildings, notwithstanding the provisions of Laws 1941, chapter 
  6.26  118. 
  6.27     Sec. 7.  Minnesota Statutes 2002, section 38.16, is amended 
  6.28  to read: 
  6.29     38.16 [EXEMPTION FROM ZONING ORDINANCES.] 
  6.30     When lands lying within the corporate limits of towns or 
  6.31  cities of the first or second class of the state are owned by a 
  6.32  county or agricultural society and used for agricultural fair 
  6.33  purposes, the lands and the buildings now or hereafter erected 
  6.34  thereon shall be are exempt from the zoning, building, and other 
  6.35  ordinances of the town or city; provided, that no license or 
  6.36  permit need be obtained from, nor fee paid to, the town or city 
  7.1   in connection with the use of the lands.  
  7.2      Sec. 8.  [REPEALER.] 
  7.3      Minnesota Statutes 2002, sections 38.02, subdivision 2; and 
  7.4   38.13, are repealed.