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Key: (1) language to be deleted (2) new language

                             CHAPTER 85-S.F.No. 511 
                  An act relating to the state agricultural society; 
                  authorizing establishment of a nonprofit corporation; 
                  changing certain membership provisions; amending 
                  Minnesota Statutes 2000, section 37.03, subdivision 1; 
                  proposing coding for new law in Minnesota Statutes, 
                  chapter 37. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2000, section 37.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MEMBERS.] Members of the state 
        agricultural society must be citizens of this state.  The 
        membership is as follows: 
           (a) Three delegates chosen annually by each agricultural 
        society or association in the state which maintains an active 
        existence, holds annual fairs, and is entitled to share in the 
        state appropriation under the provisions of section 38.02.  If 
        one of those societies or associations fails to choose 
        delegates, then its president, secretary, and treasurer, by 
        virtue of their offices, are its delegates.  If two fairs 
        receiving state aid are operating in one county, each delegate 
        from each society or association is entitled to one-half vote at 
        regular or special meetings of the state society.  
           (b) One delegate appointed by the county board of each 
        county in which no county or district agricultural society 
        exists.  
           (c) Individuals elected by the society as honorary members 
        for having performed eminent services in agriculture, 
        horticulture, or related arts and sciences or long and faithful 
        service in or benefits to the society.  Honorary members must be 
        elected by two-thirds vote at any annual meeting.  The number of 
        honorary members may not exceed the society's membership and 
        only one honorary member may be elected annually.  Each honorary 
        member is entitled to one vote. 
           (d) Two elected delegates and the president may represent 
        each of the following societies and associations:  Red River 
        Valley Winter Shows, the Minnesota State Horticultural Society, 
        the State Dairyman's Association, the Minnesota Dairy Goat 
        Association, the Minnesota Honey Producers Association, Inc., 
        the Minnesota Livestock Breeders' Association, the Minnesota 
        Crop Improvement Association, the Minnesota Pork Producers 
        Association, the Minnesota Lamb and Wool Producers Association, 
        the Minnesota Horse Breeders' Association, the Minnesota 
        Veterinary Medical Association, the Minnesota Cattle Breeders' 
        Association, the Central Livestock Association, the Minnesota 
        State Poultry Association, the Farm Equipment Association, the 
        North Central Florist Association, the Minnesota Garden Flower 
        Society, the State Fair Exhibitors' Organization, the Minnesota 
        Federation of County Fairs, the State Forestry Association, the 
        Minnesota Horse Council, Minnesota Nurserymen's Association, 
        Minnesota Apple Growers' Association, State Grange of Minnesota, 
        Minnesota Farmers' Union, American Dairy Association of 
        Minnesota, and the Minnesota Farm Bureau Federation.  
           (e) The following societies and associations are entitled 
        to one delegate each:  Central Minnesota Vegetable Growers 
        Association, the Minnesota Fruit and Vegetable Growers' 
        Association, Minnesota Shorthorn Breeders' Association, the 
        Minnesota Milking Shorthorn Association, Minnesota Guernsey 
        Breeders' Association, Minnesota Jersey Cattle Club, Minnesota 
        Holstein Association, Minnesota Hereford Association, Minnesota 
        Aberdeen Angus Breeders', Minnesota Red Polled Breeders', 
        Minnesota Ayreshire Breeders' Association, Minnesota Brown Swiss 
        Association, Minnesota Poland China Breeders' Association, 
        Minnesota Duroc Breeders', Minnesota Chester White Association, 
        Minnesota Turkey Growers' Association, Minnesota Gladiolus 
        Society, Minnesota Hampshire Association, Minnesota Suffolk 
        Association, North American Dairy Sheep Association, and the 
        Minnesota Berkshire Association. 
           All of these (f) The societies and associations listed in 
        paragraphs (d) and (e) must be active and statewide in their 
        scope and operation, hold annual meetings, and be incorporated 
        under the laws of the state before they are entitled to a 
        delegate.  The societies and associations must file with the 
        secretary of state, on or before December 20, a report showing 
        that the society or association has held a regular annual 
        meeting for that year, a summary of its financial transactions 
        for the current year, and an affidavit of the president and 
        secretary that it has a paid-up membership of at least 25.  On 
        or before December 31, the secretary of state shall certify to 
        the secretary of the state agricultural society the names of the 
        societies or associations that have complied with these 
        provisions.  
           (g) If a society or association ceases to exist or 
        otherwise fails to comply with the requirements of paragraph 
        (f), its membership in the state agricultural society and its 
        right to delegates is terminated and it may be replaced by 
        another society or association representing the same or similar 
        interests and chosen by a majority vote of the members of the 
        society at its next annual meeting. 
           (f) (h) The members of the board of managers of the state 
        agricultural society are members of the society and entitled to 
        one vote each. 
           Sec. 2.  [37.27] [FAIR FOUNDATION.] 
           The state agricultural society may establish a nonprofit 
        corporation to be operated exclusively for charitable purposes 
        as contemplated by sections 170(c)(2) and 501(c)(3) of the 
        United States Internal Revenue Code.  Subject to those sections, 
        the corporation must be organized and operated exclusively for 
        the benefit and to carry out the purposes of the state 
        agricultural society for so long as the state agricultural 
        society is and remains an organization as described in section 
        509(a)(1) or 509(a)(2) of the Internal Revenue Code.  The 
        corporation shall solicit, receive, hold, invest, and contribute 
        funds and property for the use and benefit of the state 
        agricultural society in a manner consistent with the public good 
        and primarily for capital expenditures and other needs not 
        funded by other means.  The corporation may be known as the 
        Minnesota state fair foundation. 
           Presented to the governor May 8, 2001 
           Signed by the governor May 10, 2001, 2:47 p.m.