Bill Summary – FastDemocracy

Stricken language would be deleted from and underlined language would be added to present law.
                                           Act 700 of the Regular Session
 State of Arkansas
 93rd General Assembly                        A Bill
 Regular Session, 2021                                                             SENATE BILL 613
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 By: Senator J. Sturch
 By: Representative Slape
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                                   For An Act To Be Entitled
                 AN ACT TO ESTABLISH A FAIR-FUNDING PROGRAM WITHIN THE
                 DEPARTMENT OF AGRICULTURE; TO REPEAL EXISTING LAW
                 REGARDING LIVESTOCK SHOWS AND FAIRS; TO ESTABLISH THE
                 AGRI FAIR FUND; AND FOR OTHER PURPOSES.
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                                               Subtitle
                         TO ESTABLISH A FAIR-FUNDING PROGRAM
                         WITHIN THE DEPARTMENT OF AGRICULTURE; TO
                         REPEAL EXISTING LAW REGARDING LIVESTOCK
                         SHOWS AND FAIRS; AND TO ESTABLISH THE
                         AGRI FAIR FUND.
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 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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         SECTION 1.       Arkansas Code  2-33-115 is repealed.
         2-33-115.       Fees.
         (a)   The following fees shall be assessed by the Arkansas Livestock and
 Poultry Commission:
                 (1)     A fee of two dollars ($2.00) per head collected on all
 horses sold in the state; and
                 (2)     On each state, district, and county fair held in the State
 of Arkansas there shall be levied a four and five-tenths percent (4.5%)
 surcharge on each paid admission to the fairs, and such levy shall be
 remitted to the Treasurer of State, who shall deposit the revenues into the
 State Treasury to the credit of the Livestock and Poultry Special Revenue
 Fund or the Livestock and Poultry Commission Disease and Pest Control Fund as
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 determined by the Secretary of the Department of Agriculture.
         (b)   The commission is hereby authorized to promulgate such rules as
 are necessary to administer the fees, rates, or charges for services
 established herein.
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         SECTION 2.   Arkansas Code  2-36-101 is amended to read as follows:
         2-36-101.    Grading of fairs Fair-funding program.
         (a)   The Arkansas Livestock and Poultry Commission may formulate
 necessary and appropriate rules for the grading of fairs on a point system in
 cooperation with an ad hoc advisory committee formed of representatives of
 agriculture consisting of representatives from the United States Department
 of Agriculture, the University of Arkansas Cooperative Extension Service, the
 Office of Agricultural Science and Technology of the Division of Career and
 Technical Education, and the Arkansas Fair Managers Association, which shall
 make recommendations as to criteria for the allotment of grade points to the
 commission There is created within the Department of Agriculture a fair-
 funding program that shall be used to provide fair-funding assistance to
 junior livestock shows, county fairs, district fairs, and the Arkansas State
 Fair and Livestock Show.
         (b)   The advisory committee shall determine the entry classifications
 for which grade points would be allowed and delete from approval such
 classifications as beauty contests, baby shows, antique shows, skills
 contests, purchased machinery such as cars and farm equipment, or other
 noncreative categories which in their opinion would be nonproductive and not
 in accord with the concept of an agricultural and industrial convention The
 department shall utilize a historical average of total fair-funding provided
 by the State of Arkansas to previous fair funding recipients in determining
 an equitable distribution of available funding appropriated by the General
 Assembly.
         (c)(1)(A)    A recipient of fair funding under the fair-funding program
 under subsection (a) of this section shall:
                             (i)    Maintain records of expenditures; and
                             (ii)   Submit an annual financial report to the
 department and to Arkansas Legislative Audit by the end of each calendar
 year.
                      (B)   A recipient of fair funding is subject to a decrease
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 in future funding if the recipient of fair funding does not:
                           (i)    Submit an annual financial report as required
 under subdivision (c)(1)(A)(ii) of this section; or
                           (ii)   Provide proof of yearly continuing education
 requirements under guidance adopted by the department.
             (2)   A recipient of fair funding under the fair-funding program
 established under subsection (a) of this section is subject to audit by
 Arkansas Legislative Audit.
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      SECTION 3.    Arkansas Code  2-36-102 and 2-36-103 are repealed.
      2-36-102.    Exhibitors.
      An exhibitor shall be a single person who enters a display in the fair.
 Each unit shall not be construed as an exhibitor, but a person may be counted
 as an exhibitor in each classification in which he or she has an entry.
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      2-36-103.    Sale of immoral, lewd, etc., items.
      Any facilities which house county, district, or state fairs shall
 prohibit the sale of literature, pictures, clothing, or other materials which
 are immoral, lewd, obscene, indecent, or offensive. The prosecuting attorney
 shall be notified of any proposed sales of such material.
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      SECTION 4.    Arkansas Code Title 2, Chapter 36, Subchapter 2, is
 repealed.
                          Subchapter 2  Funding Generally
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      2-36-201.    Administration.
      The Arkansas Livestock and Poultry Commission shall be empowered and
 authorized to administer the provisions of this subchapter and adopt rules as
 it may deem necessary.
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      2-36-202.    Premium funds generally.
      Premium funds appropriated by the General Assembly for the purpose of
 assisting in the development of the agricultural, livestock, and related
 industries of the state shall be disbursed and, thereafter, expended by the
 county and district livestock show or fair associations in the manner and for
 the purposes provided in this subchapter.
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      2-36-203.      Premium funds for state fair.
      (a)   The Arkansas Livestock Show Association shall be entitled to
 receive the total amount of funds appropriated by the General Assembly for
 the purpose of paying premiums at the Arkansas State Fair and Livestock Show
 after qualifying by the filing of an application with the Arkansas Livestock
 and Poultry Commission and furnishing bond to the State of Arkansas in such
 form and amount and containing such conditions therein and type of surety
 thereon as the commission shall by general rules determine.
      (b)(1)     Premium funds paid over to the association shall be used only
 for the purpose of paying awards on approved entry classifications, the
 exhibitors of which are residents of this state.
               (2)   The association may pay awards on livestock to nonresident
 owners in an amount not in excess of ten percent (10%) of any premium funds
 received by it from an appropriation for the purpose of paying awards at the
 Arkansas State Fair and Livestock Show.
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      2-36-204.      Division of funds among counties and districts.
      (a)(1)     Each county and district livestock show or fair association
 qualifying shall be entitled to that part of the total funds appropriated for
 the purpose that the qualifying grade points earned by that county for the
 previous year bear to the total grade points of all counties in which all
 qualifying associations are located.
               (2)   No county shall receive less than five hundred dollars
 ($500).
      (b)(1)     Counties having more than one (1) city or town in which regular
 sessions of circuit court are authorized by law and in which livestock shows
 have been held, if otherwise qualified, may participate in the county premium
 funds on the same basis as other county shows.
               (2)   Associations located in two (2) or more adjoining counties
 may hold a joint show upon approval of their respective associations, in
 which event, the funds due each association shall be paid to the executive
 officer of the joint show.
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      2-36-205.      Use of premium funds.
      (a)(1)     Premium funds paid over by the Arkansas Livestock and Poultry
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 Commission to the respective associations shall be used only for the purpose
 of paying awards on approved entry classifications, the exhibitors of which
 are residents of this state.
               (2)   Exhibitors are ineligible to receive such funds from more
 than one (1) county association during any fiscal year.
      (b)   Not less than twenty-five percent (25%) of premium funds paid over
 by the state to the respective associations shall be used for paying premiums
 to winners of awards in the junior division of 4-H and FFA shows.
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      2-36-206.      Appropriations for construction and operation.
      (a)(1)(A)      Funds appropriated by the General Assembly to be used for
 construction of a district livestock show shall be paid over to the executive
 officers of the respective district livestock show or fair associations.
                     (B)   None of the funds may be used for paying premiums at
 or for acquiring sites for the district shows.
               (2)   No state funds may be paid over to any district association
 unless and until the executive officer shall have furnished bond to the State
 of Arkansas in such form and amount and containing such conditions and type
 of surety as the Arkansas Livestock and Poultry Commission shall by general
 rule determine.
      (b)(1)     Funds appropriated by the General Assembly to be used for
 construction and operation of the Arkansas State Fair and Livestock Show
 shall be disbursed upon orders of the commission.
               (2)   The operating revolving fund set aside in a special account
 to be used for operating expenses in conducting the livestock show shall
 continue to be set aside for that purpose. All profits from the operation of
 the show shall be deposited into this account to the extent necessary to
 maintain the balance at the full amount of the initial deposit.
               (3)   If in any year the show is operated at a loss, then funds
 appropriated for this purpose by the General Assembly shall be used to the
 extent necessary to maintain the balance in the fund account at the full
 amount of the initial deposit.
      (c)   The commission shall designate the disbursing officers of all
 livestock show funds appropriated by the General Assembly.
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      2-36-207.      Applications for funds.
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      (a)   Each county and district livestock show or fair association
 desiring to participate in funds appropriated for a given fiscal year for the
 purpose of paying premiums on qualified entries as defined in this subchapter
 shall file an application during the month of June next preceding the fiscal
 year with the Arkansas Livestock and Poultry Commission.
      (b)(1)     The application shall include a complete report on the prior
 year's fair activities with regard to fair dates, exhibitors,
 classifications, amount of association funds paid as premiums over and above
 state funds, and any and all other information requested by the commission
 which it may deem necessary in order to classify and grade the fair.
               (2)   The president, secretary, treasurer, or other executive
 officer of the association shall make application on forms to be prescribed
 and furnished by the commission.
      (c)   Only those applications received before the close of business on
 June 30 shall be considered by the commission in making allocation of funds
 appropriated for that purpose for the following fiscal year.
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      2-36-208.      Bonding of executive officers.
      No state funds may be paid over to any county and district livestock
 show or fair association unless and until the executive officer shall have
 furnished bond to the State of Arkansas in such form and amount and
 containing such conditions and type of surety as the Arkansas Livestock and
 Poultry Commission shall by general rule determine.
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      2-36-209.      Determination of bond and fund amounts.
      (a)   Within sixty (60) days after the closing date for the receipt of
 applications for funds, the Arkansas Livestock and Poultry Commission shall
 determine the amount of bond which the executive officer shall furnish and
 the amount of premium funds to which each county and district livestock show
 or fair association is entitled in accordance with the provisions of this
 subchapter.
      (b)   The state warrant issued in favor of each association for the
 amount found to be due shall be transmitted to the executive officer thereof
 upon receipt by the commission of a bond executed in conformity with its
 requirements.
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      2-36-210.      Audits of expenditures.
      (a)(1)     The executive officer of each county, district, and state
 livestock show or fair association shall file an itemized listing of all
 expenditures of state funds with the Arkansas Livestock and Poultry
 Commission in a format developed by the commission.
               (2)   Upon request by the commission, the executive officer of
 each county, district, and state livestock show or fair association shall
 present to the commission adequate documentation supporting listed
 expenditures.
      (b)   Arkansas Legislative Audit may audit all expenditures of state
 funds paid over to the executive officers of the respective county, district,
 and state livestock show or fair association and file a copy of the report of
 each audit with the commission.
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      2-36-211.      Accounting reports by recipients.
      (a)(1)     Each county and district livestock show or fair association
 participating in funds appropriated for paying premiums or appropriated for
 construction purposes at the various county, district, and fair associations
 shall annually submit to the Arkansas Livestock and Poultry Commission an
 itemized listing of all expenditures.
               (2)   In addition, the association shall file with the commission
 the original invoices, contracts, and other supporting documents necessary to
 adequately support the claim for the amount of funds received from the
 commission for construction programs.
      (b)(1)     For those expenditures representing premiums and awards
 payments, the receiving association shall file with the commission a detailed
 listing of payees, amounts, and classifications of awards and cancelled
 checks in support thereof.
               (2)   The documentation of expenditures as set forth in this
 section shall be maintained by the commission until audited by Arkansas
 Legislative Audit.
      (c)   The commission shall require that all documentation for the prior
 year's expenditures by an association be filed in compliance with subsections
 (a) and (b) of this section before the making of any further grants for
 premiums or construction to these associations.
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          SECTION 5.        Arkansas Code  2-36-301 and 2-36-302 are repealed.
          2-36-301.     Northwest Arkansas District Fair and Livestock Show.
          (a)   There is established a district livestock show to be known as the
 Northwest Arkansas District Fair and Livestock Show to be located in Boone
 County, and to be managed by the existing livestock show association which
 manages and conducts the county livestock show in that county.
          (b)   Counties composing the Northwest Arkansas District Fair and
 Livestock Show district shall be Boone County, Newton County, Marion County,
 Baxter County, Searcy County, and Carroll County.
          (c)   The Northwest Arkansas District Fair and Livestock Show shall
 enjoy the same privileges and status as the four (4) previously established
 district livestock shows in the State of Arkansas