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CHAPTER 37. STATE AGRICULTURAL SOCIETY; STATE FAIR

Table of Sections
SectionHeadnote
37.01PUBLIC CORPORATION.
37.02BUDGET; BUILDING RESTRICTIONS; EXEMPTIONS.
37.03MEMBERSHIP.
37.04BOARD OF MANAGERS.
37.05OFFICERS; COMPENSATION; EXPENSES.
37.06SECRETARY; LEGISLATIVE AUDITOR; DUTIES; REPORT.
37.07MONTHLY STATEMENTS BY SECRETARY; PURCHASES, EXPENDITURES.
37.08Repealed, 1963 c 388 s 4
37.09Repealed, 1963 c 388 s 4
37.10Repealed, 1963 c 388 s 4
37.11Superseded by 37.02
37.12Repealed, 1963 c 388 s 4
37.13OWNERSHIP OF MONEY AND PROPERTY; CAPITAL IMPROVEMENTS.
37.14MANAGEMENT OF PROPERTY; GENERAL OFFICES.
37.15EXHIBITIONS.
37.16RULES; VIOLATION.
37.17SHOWS, EXHIBITIONS, PERFORMANCES, PRIVILEGES.
37.18UNLICENSED OR IMPROPER EXHIBITION.
37.19CONTRACTS.
37.20SPECIAL PEACE OFFICERS.
37.21SALE OF LIQUORS.
37.22LOCKUP; SEIZURE OF LIQUORS.
37.23Repealed, 1982 c 625 s 16
37.24UNLAWFUL ADMISSIONS.
37.25MISDEMEANORS.
37.26Repealed, 2003 c 128 art 3 s 47
37.27FAIR FOUNDATION.

STATE FAIR FOUNDATION BONDS

37.31ISSUANCE OF BONDS.
37.32TENDER OPTION.
37.33BOND FUND.
37.34MONEY OF THE SOCIETY.
37.35NONLIABILITY.
37.36PURCHASE AND CANCELLATION BY SOCIETY.
37.37STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.
37.01 PUBLIC CORPORATION.
The State Agricultural Society is a public corporation. The conveyance to the state of the
land in Ramsey County described as Southeast Quarter (SE 1/4) of Section Twenty-one (21) and
East half (E 1/2) of East half (E 1/2) of Southwest Quarter (SW 1/4), Section Twenty-one (21),
Township Twenty-nine (29), Range Twenty-three (23), is confirmed. Anything in that conveyance
to the contrary notwithstanding, the state holds that land and any other property known and
used as the "State Fairgrounds" forever for the following public purposes: (1) exhibiting under
the management and control of the society, at annual fairs and at other times determined by the
society, the agricultural, stock-breeding, horticultural, mining, mechanical, industrial, and other
products and resources of the state, including proper exhibits and expositions of the arts, human
skills, and sciences; and (2) other uses and purposes determined by the State Agricultural Society,
including the leasing of parts of the State Fairgrounds. The society shall not lease any part of the
State Fairgrounds if the lessee is going to compete with an existing established business of auto
racing within a radius of 40 miles, except during the operation of the state fair and all other public
exhibitions pertinent to expositions of human art, industry, or skill. Neither the state nor the society
shall ever charge or encumber this property. Any part of the State Fairgrounds which is within the
boundaries of a city or other political subdivision of the state is detached from the city or political
subdivision. Nothing in this section exempts otherwise taxable property on the fairgrounds or the
fairgrounds itself from real and personal property taxes pursuant to chapters 272 to 275 and 471.
History: (7860) RL s 3079; Ex1957 c 6 s 1; 1982 c 625 s 2; 1985 c 265 art 2 s 1
37.02 BUDGET; BUILDING RESTRICTIONS; EXEMPTIONS.
The State Agricultural Society is subject to and has all powers, rights, and privileges granted
by law, with the following exceptions:
(a) The society need not comply with the provisions of Laws 1939, chapter 431, relating to
budgets, allotments, and encumbering of funds.
(b) The society is not subject to the supervision of the commissioner of administration in the
erection and construction of any new building.
(c) The books and accounts of the society are subject to examination by the legislative auditor.
History: (53-1m, 53-43) 1925 c 426 art 17 s 1; 1939 c 431 art 8 s 12; 1951 c 489 s 1;
1974 c 492 s 14; 1985 c 265 art 2 s 1
37.03 MEMBERSHIP.
    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: the Minnesota State Horticultural Society, 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 Beef Cattle Improvement
Association, the Central Livestock Association, the Minnesota State Poultry Association, the
Farm Equipment Association, the Minnesota State Florists Association, the State Fair Exhibitors'
Organization, the Minnesota Federation of County Fairs, the Minnesota Forestry Association,
the Minnesota Horse Council, Minnesota Nursery and Landscape Association, Minnesota Apple
Growers' Association, State Grange of Minnesota, Minnesota Farmers' Union, American Dairy
Association of the Midwest, 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 Breeders, the Minnesota Angus
Association, 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 Sheep Association, Minnesota Suffolk Sheep Association, North American
Dairy Sheep Association, and the Minnesota Berkshire Association.
(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.
(h) The members of the board of managers of the State Agricultural Society are members
of the society and entitled to one vote each.
    Subd. 2. Eligibility to vote. On all questions arising for determination by the State
Agricultural Society, including the election of members of the board of managers, each delegate
present is entitled to one vote. The society shall not recognize proxies except that when less than
three delegates of a county or district agricultural society shall attend the annual meeting, those
present may cast the full vote of that society. All delegates must be accredited, in writing, and their
credentials must be signed by the president and secretary of the society or association represented.
History: (7861) RL s 3080; 1905 c 307; 1911 c 381 s 1; 1913 c 194; 1919 c 116 s 1; 1921 c
290 s 1; 1927 c 144 s 1; 1931 c 231; 1933 c 136; Ex1934 c 57 s 1,2; 1935 c 227; Ex1936 c 110;
1937 c 106 s 1; 1961 c 630 s 1; 1973 c 97 s 1; 1985 c 265 art 2 s 1; 1988 c 522 s 1; 1991 c 35 s
1; 2001 c 85 s 1; 2003 c 2 art 1 s 5
37.04 BOARD OF MANAGERS.
    Subdivision 1. Membership; quorum. A board of managers shall manage and control the
State Agricultural Society. The board consists of a president and nine other members, two of
whom are vice-presidents. Each member represents one of nine regional districts. Six members
constitute a quorum for the purposes of any board meeting.
    Subd. 2. Regional districts. For purposes of electing members of the board of managers
of the State Agricultural Society, the regional districts are identical with the nine congressional
districts as established by Laws 1933, chapter 185, and are numbered accordingly.
    Subd. 3. Annual meeting. The annual meeting of the society must be held at the State
Fairgrounds or at any other place in Minnesota selected by the board of managers. The meeting
must be held during a three-day period selected by the board of managers commencing no earlier
than January 2 and no later than January 31. At least 30 days' written notice of the time and place
of the annual meeting must be given to all members of the society.
    Subd. 4. Elections. At the annual meeting, the members of the society shall elect a president
from among the members of the board of managers for a term of one year. The president may
not be a resident of the fourth or the fifth regional districts. The members shall also elect seven
managers as follows:
(1) at the annual meeting on each third year after 1963, one manager from each of the first,
third, and sixth regional districts;
(2) at the annual meeting on each third year after 1964, one manager from each of the
seventh and ninth regional districts;
(3) at the annual meeting on each third year after 1965, one manager from each of the
second and eighth regional districts.
At the annual meeting in each even-numbered year a vice-president must be elected from
the fifth regional district, and in each odd-numbered year a vice-president must be elected from
the fourth regional district.
    Subd. 5. Regional representatives. Only one member of the board of managers, exclusive
of the president, may be a resident of any one regional district. On the day before the last day of
the annual meeting, the accredited delegates to the meeting from each regional district whose
manager's term expires in that year shall meet together at the place of the annual meeting and
nominate and certify to the annual meeting the choice of that district for manager. At the time
fixed for the election of the president of the society and after the nominations have been certified,
presented, and read to the annual meeting, the annual meeting shall proceed to elect managers to
fill all expiring terms.
    Subd. 6. Vacancies. A vacancy which occurs before the expiration of any term of office of a
member of the board of managers may be filled by the remaining members of the board. Any
person appointed to fill a vacancy holds office only until the next annual meeting of the society, at
which a successor must be elected in the manner provided to serve the balance of the unexpired
term.
History: (7862) RL s 3081; 1911 c 381 s 2; 1917 c 277 s 1; 1917 c 508 s 1; 1963 c 141 s 1;
1982 c 625 s 3; 1985 c 265 art 2 s 1
37.05 OFFICERS; COMPENSATION; EXPENSES.
The annual honorarium of the president of the board of managers is $1,400, and that of
the other members is $1,000 each.
On the final day of each annual meeting of the society the board shall elect a secretary to
hold office for one year and until a successor is elected and qualified. The board shall set the
compensation of the secretary. The board may also appoint a treasurer for the term of one year
and fix the treasurer's compensation. The treasurer shall keep all accounts and fiscal records of the
society. The board may designate the secretary as the treasurer of the society.
The board may allow the traveling expenses of its members and of the secretary and treasurer
or other employees while in the performance of their official duties. Claims for traveling expenses
must be itemized in full and verified before allowance.
History: (7863) RL s 3082; 1911 c 381 s 3; 1963 c 388 s 1; 1965 c 431 s 1; 1982 c 625 s 4;
1985 c 265 art 2 s 1
37.06 SECRETARY; LEGISLATIVE AUDITOR; DUTIES; REPORT.
The secretary shall keep a complete record of the proceedings of the annual meetings of the
State Agricultural Society and all meetings of the board of managers and any committee of the
board, keep all accounts of the society other than those kept by the treasurer of the society, and
perform other duties as directed by the board of managers. On or before December 31 each year,
the secretary shall report to the governor for the fiscal year ending October 31 all the proceedings
of the society during the current year and its financial condition as appears from its books. This
report must contain a full, detailed statement of all receipts and expenditures during the year.
The books and accounts of the society for the fiscal year must be examined and audited
annually by the legislative auditor. The cost of the examination must be paid by the society
to the state and credited to the general fund.
A summary of this examination, certified by the legislative auditor, must be appended to the
secretary's report, along with the legislative auditor's recommendations and the proceedings of
the first annual meeting of the society held following the secretary's report, including addresses
made at the meeting as directed by the board of managers. The summary, recommendations, and
proceedings must be printed in the same manner as the reports of state officers. Copies of the
report must be printed annually and distributed as follows: to each society or association entitled
to membership in the society, to each newspaper in the state, and the remaining copies as directed
by the board of managers.
History: (7864) RL s 3083; 1911 c 381 s 4; 1957 c 61 s 1; 1963 c 388 s 2; 1973 c 492 s 14;
1982 c 625 s 5; 1985 c 265 art 2 s 1; 1999 c 99 s 9
37.07 MONTHLY STATEMENTS BY SECRETARY; PURCHASES, EXPENDITURES.
The secretary of the State Agricultural Society shall prepare a signed statement each month
summarizing receipts and expenditures for the preceding month, which must be approved by the
president or a vice-president of the board of managers. The secretary's affidavit must be attached
to this statement. The affidavit must state:
(1) that all articles were purchased by or under the secretary's direction, and that to the
secretary's best information and belief, all articles purchased by the board of managers were
purchased at a fair cash market value and received by the society, and that all services charged
for were actually provided;
(2) that neither the secretary nor any person in the secretary's behalf, or the board of
managers, to the secretary's best information and belief, had any pecuniary or other interest in any
purchase made or services rendered, or received any pecuniary or other benefit from the purchases
or services, directly or indirectly, by commission, percentage, deduction, or otherwise; and
(3) that the articles specified conformed in every respect to the goods ordered, in both
quality and quantity.
The report must also show the amount of money in the hands of the treasurer of the society.
Copies of the secretary's monthly report must be furnished to the commissioner of finance
and to each member of the board of managers no later than the tenth of the month following the
month's activities reported.
The board of managers shall designate one or more national or state banks, or trust
companies authorized to do a banking business, as official depositories for the society's money,
and shall then require the treasurer to deposit all or part of that money in the designated bank or
banks. The designation must be in writing and must set forth all the terms and conditions upon
which the deposits are made, and it must be signed by the president and secretary and made a part
of the minutes of the board. Any bank or trust company designated must qualify as a depository
by furnishing a corporate surety bond or collateral as required by section 118A.03, and must, as
long as any of the society's money is on deposit with it, maintain the bond or collateral in the
amounts required by that section. No bond or collateral is required to secure any deposit if it is
insured under federal law, as provided in section 118A.03.
History: (7865) 1911 c 381 s 8; 1963 c 388 s 3; 1965 c 411 s 1; 1973 c 492 s 14; 1985 c 265
art 2 s 1; 1996 c 399 art 2 s 12; 1999 c 99 s 10
37.08 [Repealed, 1963 c 388 s 4]
37.09 [Repealed, 1963 c 388 s 4]
37.10 [Repealed, 1963 c 388 s 4]
37.11 [Superseded by 37.02]
37.12 [Repealed, 1963 c 388 s 4]
37.13 OWNERSHIP OF MONEY AND PROPERTY; CAPITAL IMPROVEMENTS.
    Subdivision 1. Use of money. The state owns all money and other property of the society
in the name of the society and there may be no division of its assets among society members.
Money received by the society must be used for holding its annual fair and for other exhibitions
or expositions the society holds, for the improvement of the fairgrounds, for the payment of
expenses, premiums, and purses, for the acquisition of real and personal property, for the use and
benefit of the society, and for furnishing attractions and amusements the board of managers
considers necessary for the success of its fairs and other exhibitions and expositions.
    Subd. 2.[Repealed, 1Sp2003 c 21 art 8 s 20]
History: (7872) RL s 3084; Ex1957 c 6 s 2; 1965 c 411 s 2; 1985 c 265 art 2 s 1; 2000
c 418 art 1 s 2
37.14 MANAGEMENT OF PROPERTY; GENERAL OFFICES.
The custody, management, and control of the fairgrounds and all fairgrounds structures are
vested in the society as a department of the state, and its general offices containing its property
and records must be maintained upon the fairgrounds.
History: (7873) RL s 3085; 1985 c 265 art 2 s 1
37.15 EXHIBITIONS.
The society shall hold upon the fairgrounds an annual fair and may invite the cooperation of
any other states or countries in that fair. The society shall provide for and pay premiums, and
money spent for premiums, exhibits, or other displays must be for the purpose of encouraging
agriculture, horticulture, stock-breeding, manufactures, and the mining, mechanical, and
industrial arts and sciences.
History: (7874) RL s 3086; 1961 c 561 s 6; 1985 c 265 art 2 s 1
37.16 RULES; VIOLATION.
The society may make all bylaws, ordinances, and rules consistent with law which it
considers necessary or proper for the government of the fairgrounds and all fairs to be held on
them, and for the protection, health, safety, and comfort of the public on the fairgrounds. The
bylaws, ordinances, and rules are effective when filed with the secretary of the society. The
violation of a bylaw, rule, or ordinance of the society is a misdemeanor.
History: (7875) RL s 3087; 1965 c 796 s 1; 1985 c 265 art 2 s 1
37.17 SHOWS, EXHIBITIONS, PERFORMANCES, PRIVILEGES.
    Subdivision 1. License, regulation. The society may license and regulate shows, exhibitions,
performances, and privileges on the fairgrounds, revoke licenses, and prohibit, remove, and
summarily stop exhibitions, performances, or privileges which violate society rules or other law.
    Subd. 2. Service of process. The acceptance of any license given pursuant to subdivision 1
by a nonresident of Minnesota is an appointment by the nonresident of the secretary of state to be
a lawful agent upon whom may be served all legal processes in any action or proceeding against
the nonresident resulting from the operation of the licensed show, exhibition, performance, or
privilege. The acceptance of a license by the nonresident signifies agreement that service of
process upon the secretary of state has the same effect as service upon the nonresident personally.
Publication of summons need not be made upon the nonresident. In all cases under this
subdivision, service of process or service of any writ or notice in an action or proceedings must
be made upon the secretary of state in the manner provided by law for service upon residents of
the state, and has the same effect as personal service within the state upon the nonresident. After
a nonresident appears in an action or proceeding by an attorney residing in Minnesota, papers
must be served upon the attorney.
    Subd. 3.[Repealed, 1982 c 625 s 16]
    Subd. 4. Solicitation. No person may solicit money or sell or distribute any merchandise or
material of any kind without a license issued by the society authorizing the solicitation, sale, or
distribution from a fixed location on the fairgrounds.
History: (7876) RL s 3088; 1951 c 253 s 1; 1981 c 357 s 27; 1982 c 625 s 6-8; 1985 c 265
art 2 s 1; 1Sp1985 c 14 art 8 s 1; 1986 c 390 s 1
37.18 UNLICENSED OR IMPROPER EXHIBITION.
A person who engages in a play, game, concert, or theatrical or other performance, or who
exhibits a show of any kind on the fairgrounds without a license from the society is guilty of a
misdemeanor and must be removed from the fairgrounds.
A person who sells, distributes, or exhibits obscene materials or performances is guilty of
a misdemeanor and the board of managers of the society shall suspend that person's license
and require the forfeiture of all money paid to the society in connection with the performance
or exhibit.
History: (7877) RL s 3089; 1982 c 625 s 9; 1985 c 265 art 2 s 1
37.19 CONTRACTS.
The society may contract in its own name and through its officers and agents without
advertising for or publicly requesting bids. This chapter and all ordinances, bylaws, and rules
adopted by the society's board of managers are a part of every contract entered into with any
exhibitor, privilege holder, lessee, licensee, or other person. The society may contract for the
purchase of services from any business, municipality, county, state agency, or department. The
society may purchase, sell, lease, or otherwise engage in transactions respecting real property in
its own name, and with terms and conditions acceptable to its board of managers. The provisions
of section 37.01 apply to the specific properties described in it, except space rental contracts and
ground leases for a term of one year or less. The society shall submit to the state Executive
Council for its approval, as provided by chapter 9, all its transactions involving real properties,
and no transaction involving real property is final until it is approved by the Executive Council.
All transactions involving real property previously made by the society are ratified, confirmed,
and approved.
History: (7878) RL s 3090; Ex1957 c 6 s 3; 1965 c 411 s 3; 1982 c 625 s 10; 1983 c 337 s 4;
1984 c 441 s 1; 1985 c 265 art 2 s 1
37.20 SPECIAL PEACE OFFICERS.
The secretary or the president of the society may appoint, in a writing signed by either
of them, as many peace officers, as defined in section 626.84, subdivision 1, clause (c), as are
necessary, both during the annual fair and throughout the year for the regulation of the Minnesota
State Fairgrounds. These peace officers, before entering upon their duties, shall take and subscribe
the usual oath of office, endorsed upon their appointment. They have upon the fairgrounds all
the power and authority of peace officers and may, within these limits, without warrant, arrest
any person found violating state law or any rule, bylaw, or ordinance of the society. They may
summarily remove the persons and property of the offenders from the grounds, and take them
before any court of competent jurisdiction to be dealt with according to law. Each peace officer
shall wear an appropriate badge of office while acting as a peace officer. The society may also
contract with the state, any county, or any municipality for police service and protection on
the fairgrounds.
History: (7879) RL s 3091; 1965 c 796 s 2; 1982 c 625 s 11; 1985 c 265 art 2 s 1
37.21 SALE OF LIQUORS.
    Subdivision 1. Liquor prohibited. Except as provided under Laws 2003, chapter 126,
section 29, as amended by Laws 2005, chapter 25, section 6, no person may sell, barter, give
away, or otherwise dispose of or introduce, have, or keep for barter, gift, or sale, any intoxicating
liquors of any kind upon the State Fairgrounds, or aid and abet any of those acts. The presence
and possession of any kind of these liquors, in any quantity, upon the person or upon the premises
leased or occupied by any person within these limits is a public nuisance and is prima facie
evidence of the purpose of the person to barter, give away, or sell the liquor. Any person who
violates this section is guilty of a misdemeanor.
    Subd. 2. Exceptions. Notwithstanding subdivision 1, the State Agricultural Society may
authorize, under terms and conditions it chooses, the sale, possession, and consumption of
intoxicating liquors at special events taking place on the fairgrounds at times other than during the
annual fair including, but not limited to, family reunions, class reunions, weddings, conventions,
and similar events. This section does not authorize the society to issue retail licenses for the sale
of alcoholic beverages. Notwithstanding subdivision 1, the State Agricultural Society may also
authorize, under terms and conditions it chooses, consistent with state law, the sale, possession,
and consumption of intoxicating malt liquors during the annual fair or at other times of their
choosing, provided that at least one Minnesota brewed malt liquor is made available for sale
at each allowed location within the grounds.
History: (7880) RL s 3092; 1982 c 625 s 12; 1985 c 265 art 2 s 1; 2000 c 440 s 1; 2007 c 13
art 1 s 4; 2007 c 89 s 1,2
37.22 LOCKUP; SEIZURE OF LIQUORS.
The society may provide and maintain a watchhouse or lockup on the fairgrounds for
the confinement of offenders and the temporary detention of suspected persons. The society's
peace officers shall, without warrant, seize and destroy any intoxicating liquors found upon
the fairgrounds.
History: (7881) RL s 3093; 1982 c 625 s 13; 1985 c 265 art 2 s 1
37.23 [Repealed, 1982 c 625 s 16]
37.24 UNLAWFUL ADMISSIONS.
Any person who steals or unlawfully obtains a ticket, paper, or other writing entitling, or
purporting to entitle, the holder to admission to any part of the State Fairgrounds or who sells or
disposes of a ticket which upon its face appears to be nontransferable and to have been issued to
another, without informing the purchaser of its character, is guilty of a misdemeanor.
History: (7883) RL s 3095; 1985 c 265 art 2 s 1
37.25 MISDEMEANORS.
In addition to other misdemeanors specified by statute, during the annual state fair or during
any period when the board of managers requires fees for admission to the fairgrounds, every
person who trespasses on, enters, or attempts to enter the fairgrounds in any manner, except
through the entrance gates, without payment of the required fees or who trespasses on, enters, or
attempts to enter any reserved enclosure on the fairgrounds, or who obtains permission to do so by
impersonating another or by any misrepresentation or false pretense is guilty of a misdemeanor. A
person who is found lurking, lying in wait, or loitering in the immediate vicinity of, or concealed
in any building, yard, or premises upon the fairgrounds with intent to commit any offense or
mischief is guilty of a misdemeanor.
History: (7884) RL s 3096; 1965 c 796 s 4; 1985 c 265 art 2 s 1
37.26 [Repealed, 2003 c 128 art 3 s 47]
37.27 MS 1981 Supp [Repealed, 1982 c 625 s 16]
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.
History: 2001 c 85 s 2

STATE FAIR FOUNDATION BONDS

37.31 ISSUANCE OF BONDS.
    Subdivision 1. Bonding authority. The society may issue negotiable bonds in a principal
amount that the society determines necessary to provide sufficient money for achieving its
purposes, including the payment of interest on bonds of the society, the establishment of reserves
to secure its bonds, the payment of fees to a third party providing credit enhancement, and the
payment of all other expenditures of the society incident to and necessary or convenient to carry
out its corporate purposes and powers. Bonds of the society may be issued as bonds or notes or in
any other form authorized by law. The principal amount of bonds issued and outstanding under
this section at any time may not exceed $20,000,000, excluding bonds for which refunding bonds
or crossover refunding bonds have been issued.
    Subd. 2. Refunding of bonds. The society may issue bonds to refund outstanding bonds of
the society, to pay any redemption premiums on those bonds, and to pay interest accrued or to
accrue to the redemption date next succeeding the date of delivery of the refunding bonds. The
society may apply the proceeds of any refunding bonds to the purchase or payment at maturity of
the bonds to be refunded, or to the redemption of outstanding bonds on the redemption date next
succeeding the date of delivery of the refunding bonds and may, pending the application, place the
proceeds in escrow to be applied to the purchase, retirement, or redemption of the bonds. Pending
use, escrowed proceeds may be invested and reinvested in obligations issued or guaranteed by the
state or the United States or by any agency or instrumentality of the state or the United States, or
in certificates of deposit or time deposits secured in a manner determined by the society, maturing
at a time appropriate to assure the prompt payment of the principal and interest and redemption
premiums, if any, on the bonds to be refunded. The income realized on any investment may also
be applied to the payment of the bonds to be refunded. After the terms of the escrow have been
fully satisfied, any balance of the proceeds and any investment income may be returned to the
society for use by it in any lawful manner. All refunding bonds issued under this subdivision must
be issued and secured in the manner provided by resolution of the society.
    Subd. 3. Kind of bonds. Bonds issued under this section must be negotiable investment
securities within the meaning and for all purposes of the Uniform Commercial Code, subject only
to the provisions of the bonds for registration. The bonds issued must be limited obligations of the
society not secured by its full faith and credit and payable solely from specified sources or assets.
    Subd. 4. Resolution and terms of sale. The bonds of the society must be authorized by a
resolution or resolutions adopted by the society. The bonds must bear the date or dates, mature at
the time or times, bear interest at a fixed or variable rate, including a rate varying periodically
at the time or times and on the terms determined by the society, or any combination of fixed
and variable rates, be in the denominations, be in the form, carry the registration privileges, be
executed in the manner, be payable in lawful money of the United States, at the place or places
within or without the state, and be subject to the terms of redemption or purchase before maturity
as the resolutions or certificates provide. If, for any reason existing at the date of issue of the
bonds or existing at the date of making or purchasing any loan or securities from the proceeds
or after that date, the interest on the bonds is or becomes subject to federal income taxation,
this fact does not affect the validity or the provisions made for the security of the bonds. The
society may make covenants and take or have taken actions that are in its judgment necessary or
desirable to comply with conditions established by federal law or regulations for the exemption
of interest on its obligations. The society may refrain from compliance with those conditions if
in its judgment this would serve the purposes and policies set forth in this chapter with respect
to any particular issue of bonds, unless this would violate covenants made by the society. The
maximum maturity of a bond, whether or not issued for the purpose of refunding, must be 30
years from its date. The bonds of the society may be sold at public or private sale, at a price or
prices determined by the society; provided that:
(1) the aggregate price at which an issue of bonds is initially offered by underwriters to
investors, as stated in the society's official statement with respect to the offering, must not
exceed by more than three percent the aggregate price paid by the underwriters to the society at
the time of delivery;
(2) the commission paid by the society to an underwriter for placing an issue of bonds with
investors must not exceed three percent of the aggregate price at which the issue is offered to
investors as stated in the society's offering statement; and
(3) the spread or commission must be an amount determined by the society to be reasonable
in light of the risk assumed and the expenses of issuance, if any, required to be paid by the
underwriters.
    Subd. 5. Exemption. The notes and bonds of the society are not subject to sections 16C.03,
subdivision 4
, and 16C.05.
    Subd. 6. Reserves; funds; accounts. The society may establish reserves, funds, or accounts
necessary to carry out the purposes of the society or to comply with any agreement made by or
any resolution passed by the society.
    Subd. 7. Approval; commissioner of finance. Before issuing bonds under this section, the
society must obtain the approval, in writing, of the commissioner of finance.
    Subd. 8. Expiration. The authority to issue bonds, other than bonds to refund outstanding
bonds, under this section expires July 1, 2009.
History: 2003 c 127 art 12 s 1; 1Sp2003 c 21 art 10 s 11; 2004 c 228 art 1 s 15
37.32 TENDER OPTION.
An obligation may be issued giving its owner the right to tender or the society to demand
tender of the obligation to the society or another person designated by it, for purchase at a
specified time or times, if the society has first entered into an agreement with a suitable financial
institution obligating the financial institution to provide funds on a timely basis for purchase of
bonds tendered. The obligation is not considered to mature on any tender date and the purchase of
a tendered obligation is not considered a payment or discharge of the obligation by the society.
Obligations tendered for purchase may be remarketed by or on behalf of the society or another
purchaser. The society may enter into agreements it considers appropriate to provide for the
purchase and remarketing of tendered obligations, including:
(1) provisions under which undelivered obligations may be considered tendered for purchase
and new obligations may be substituted for them;
(2) provisions for the payment of charges of tender agents, remarketing agents, and financial
institutions extending lines of credit or letters of credit assuring repurchase; and
(3) provisions for reimbursement of advances under letters of credit that may be paid from
the proceeds of the obligations or from tax and other revenues appropriated for the payment and
security of the obligations and similar or related provisions.
History: 2003 c 127 art 12 s 2; 1Sp2003 c 21 art 10 s 11
37.33 BOND FUND.
    Subdivision 1. Creation and contents. The society may establish a special fund or funds for
the security of one or more or all series of its bonds. The funds must be known as debt service
reserve funds. The society may pay into each debt service reserve fund:
(1) the proceeds of sale of bonds to the extent provided in the resolution or indenture
authorizing the issuance of them;
(2) money directed to be transferred by the society to the debt service reserve fund; and
(3) other money made available to the society from any other source only for the purpose of
the fund.
    Subd. 2. Use of funds. Except as provided in this section, the money credited to each debt
service reserve fund must be used only for the payment of the principal of bonds of the society as
they mature, the purchase of the bonds, the payment of interest on them, or the payment of any
premium required when the bonds are redeemed before maturity. Money in a debt service reserve
fund must not be withdrawn at a time and in an amount that reduces the amount of the fund to less
than the amount the society determines to be reasonably necessary for the purposes of the fund.
However, money may be withdrawn to pay principal or interest due on bonds secured by the fund
if other money of the society is not available.
    Subd. 3. Investment. Money in a debt service reserve fund not required for immediate use
may be invested in accordance with section 37.07.
    Subd. 4. Minimum amount of reserve at issuance. If the society establishes a debt service
reserve fund for the security of any series of bonds, it shall not issue additional bonds that are
similarly secured if the amount of any of the debt service reserve funds at the time of issuance
does not equal or exceed the minimum amount required by the resolution creating the fund,
unless the society deposits in each fund at the time of issuance, from the proceeds of the bonds,
or otherwise, an amount that when added together with the amount then in the fund will be at
least the minimum amount required.
    Subd. 5. Transfer of excess. To the extent consistent with the resolutions and indentures
securing outstanding bonds, the society may at the close of a fiscal year transfer to any other fund
or account from any debt service reserve fund any excess in that reserve fund over the amount
determined by the society to be reasonably necessary for the purpose of the reserve fund.
History: 2003 c 127 art 12 s 3; 1Sp2003 c 21 art 10 s 11
37.34 MONEY OF THE SOCIETY.
The society may contract with the holders of any of its bonds as to the custody, collection,
securing, investment, and payment of money of the society or money held in trust or otherwise
for the payment of bonds, and to carry out the contract. Money held in trust or otherwise for the
payment of bonds or in any way to secure bonds and deposits of the money may be secured in
the same manner as money of the society, and all banks and trust companies are authorized to
give security for the deposits.
History: 2003 c 127 art 12 s 4; 1Sp2003 c 21 art 10 s 11
37.35 NONLIABILITY.
    Subdivision 1. Nonliability of individuals. No member of the society or other person
executing the bonds is liable personally on the bonds or is subject to any personal liability or
accountability by reason of their issuance.
    Subd. 2. Nonliability of state. The state is not liable on bonds of the society issued under
section 37.31 and those bonds are not a debt of the state. The bonds must contain on their face
a statement to that effect.
History: 2003 c 127 art 12 s 5; 1Sp2003 c 21 art 10 s 11
37.36 PURCHASE AND CANCELLATION BY SOCIETY.
Subject to agreements with bondholders that may then exist, the society may purchase
out of money available for the purpose, bonds of the society which shall then be canceled, at a
price not exceeding the following amounts:
(1) if the bonds are then redeemable, the redemption price then applicable plus accrued
interest to the next interest payment date of the bonds; or
(2) if the bonds are not redeemable, the redemption price applicable on the first date after the
purchase upon which the bonds become subject to redemption plus accrued interest to that date.
History: 2003 c 127 art 12 s 6; 1Sp2003 c 21 art 10 s 11
37.37 STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.
The state pledges and agrees with the holders of bonds issued under section 37.31 that the
state will not limit or alter the rights vested in the society to fulfill the terms of any agreements
made with the bondholders or in any way impair the rights and remedies of the holders until
the bonds, together with interest on them, with interest on any unpaid installments of interest,
and all costs and expenses in connection with any action or proceeding by or on behalf of the
bondholders, are fully met and discharged. The society may include this pledge and agreement of
the state in any agreement with the holders of bonds issued under section 37.31.
History: 2003 c 127 art 12 s 7; 1Sp2003 c 21 art 10 s 11