Senate File 2241

                                   SENATE FILE       
                                   BY  COMMITTEE ON LOCAL GOVERNMENT

                                   (SUCCESSOR TO SSB 3135)


    Passed Senate,  Date               Passed House, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act providing for the administration of fairs, providing for
  2    the allocation of moneys, and providing for an effective date.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5589SV 80
  5 da/gg/14

PAG LIN

  1  1    Section 1.  Section 21.2, subsection 1, paragraph f, Code
  1  2 2003, is amended to read as follows:
  1  3    f.  A nonprofit corporation other than a county or district
  1  4 fair or agricultural society conducting a fair event as
  1  5 provided in chapter 174, whose facilities or indebtedness are
  1  6 supported in whole or in part with property tax revenue and
  1  7 which is licensed to conduct pari=mutuel wagering pursuant to
  1  8 chapter 99D or a nonprofit corporation which is a successor to
  1  9 the nonprofit corporation which built the facility.
  1 10    Sec. 2.  Section 22.1, subsections 1 and 3, Code 2003, are
  1 11 amended to read as follows:
  1 12    1.  The term "government body" means this state, or any
  1 13 county, city, township, school corporation, political
  1 14 subdivision, tax=supported district, nonprofit corporation
  1 15 other than a county or district fair or agricultural society
  1 16 conducting a fair event as provided in chapter 174, whose
  1 17 facilities or indebtedness are supported in whole or in part
  1 18 with property tax revenue and which is licensed to conduct
  1 19 pari=mutuel wagering pursuant to chapter 99D, or other entity
  1 20 of this state, or any branch, department, board, bureau,
  1 21 commission, council, committee, official or officer, of any of
  1 22 the foregoing or any employee delegated the responsibility for
  1 23 implementing the requirements of this chapter.
  1 24    3.  As used in this chapter, "public records" includes all
  1 25 records, documents, tape, or other information, stored or
  1 26 preserved in any medium, of or belonging to this state or any
  1 27 county, city, township, school corporation, political
  1 28 subdivision, nonprofit corporation other than a county or
  1 29 district fair or agricultural society conducting a fair event
  1 30 as provided in chapter 174, whose facilities or indebtedness
  1 31 are supported in whole or in part with property tax revenue
  1 32 and which is licensed to conduct pari=mutuel wagering pursuant
  1 33 to chapter 99D, or tax=supported district in this state, or
  1 34 any branch, department, board, bureau, commission, council, or
  1 35 committee of any of the foregoing.
  2  1    Sec. 3.  Section 99B.1, subsections 4 and 13, Code
  2  2 Supplement 2003, are amended to read as follows:
  2  3    4.  "Authorized" means approved as a concession by the Iowa
  2  4 state fair board or a county or district fair or agricultural
  2  5 society holding conducting a fair event as provided in chapter
  2  6 174.
  2  7    13.  "Fair" means an annual fair and exposition held by the
  2  8 Iowa state fair board and any fair held by a county or
  2  9 district fair or agricultural society event conducted by a
  2 10 fair under the provisions of chapter 174.
  2 11    Sec. 4.  Section 99D.13, subsection 3, paragraphs a and b,
  2 12 Code 2003, are amended to read as follows:
  2 13    a.  Eighty percent of the amount appropriated shall be
  2 14 allocated to qualified harness racing tracks, to be used by
  2 15 the tracks to supplement the purses for those harness races in
  2 16 which only Iowa=bred or owned horses may run.  However,
  2 17 beginning with the allocation of the appropriation made for
  2 18 the fiscal year beginning July 1, 1992, the races for which
  2 19 the purses are to be supplemented under this paragraph shall
  2 20 be those in which only Iowa=bred two=year and three=year olds
  2 21 may run.  In addition, the races must be held under the
  2 22 control or jurisdiction of the Iowa state fair board,
  2 23 established under section 173.1, or of a society fair, as
  2 24 defined under section 174.1.
  2 25    b.  Twenty percent of the amount appropriated shall be
  2 26 allocated to qualified harness racing tracks, to be used by
  2 27 the tracks for maintenance of and improvements to the tracks.
  2 28 Races held at the tracks must be under the control or
  2 29 jurisdiction of the Iowa state fair board, established under
  2 30 section 173.1, or of a society fair, as defined under section
  2 31 174.1.
  2 32    Sec. 5.  Section 173.3, Code Supplement 2003, is amended to
  2 33 read as follows
  2 34    173.3  CERTIFICATION OF STATE AID ASSOCIATIONS.
  2 35    On or before November 15 of each year, the secretary of
  3  1 agriculture shall certify to the secretary of the state fair
  3  2 board the names of the various associations, fairs, and
  3  3 societies which have qualified for state aid under the
  3  4 provisions of chapters 176 through 178, 181, 182, 186, and
  3  5 352, and which are entitled to representation in the
  3  6 convention as provided in section 173.2.
  3  7    Sec. 6.  Section 174.1, subsections 1 and 2, Code 2003, are
  3  8 amended to read as follows:
  3  9    1.  "Fair event" shall mean means an annual gathering of
  3 10 people the public on fairgrounds that incorporates
  3 11 agricultural exhibits, demonstrations, shows, or competition
  3 12 competitions and which has the following activities includes
  3 13 all of the following:
  3 14    a.  Extension, Programs or projects sponsored by 4=H clubs,
  3 15 or future farmers of America programs, or the Iowa cooperative
  3 16 extension service in agriculture and home economics of Iowa
  3 17 state university.
  3 18    b.  Commercial and educational exhibits sponsored by
  3 19 manufacturers or other businesses.
  3 20    c.  Competition in the Educational programs or exhibits
  3 21 sponsored by governmental entities or nonprofit organizations.
  3 22    d.  Competition in culinary arts, fine arts, or home craft
  3 23 arts.
  3 24    2.  "Management" shall mean president, vice=president,
  3 25 secretary, or treasurer of the society a fair.
  3 26    Sec. 7.  Section 174.1, subsection 3, Code 2003, is amended
  3 27 by striking the subsection.
  3 28    Sec. 8.  Section 174.1, Code 2003, is amended by adding the
  3 29 following new subsections:
  3 30    NEW SUBSECTION.  0A.  "Association" means the association
  3 31 of Iowa fairs.
  3 32    NEW SUBSECTION.  0B.  "Fair" means an organization which is
  3 33 incorporated under the laws of this state, including as a
  3 34 county or district fair or as an agricultural society, for the
  3 35 purpose of conducting a fair event, if all of the following
  4  1 apply:
  4  2    a.  The organization owns or leases at least ten acres of
  4  3 fairgrounds.  A society may meet the requirement of owning or
  4  4 leasing land, buildings, and improvements through ownership by
  4  5 a joint entity under chapter 28E.
  4  6    b.  The organization owns buildings and other improvements
  4  7 situated on the fairgrounds which have been specially
  4  8 constructed for purposes of conducting a fair event.
  4  9    c.  The market value of the fairgrounds and buildings and
  4 10 other improvements located on the fairgrounds is at least
  4 11 eighty thousand dollars.
  4 12    NEW SUBSECTION.  0C.  "Fairgrounds" or "grounds" means the
  4 13 real estate, including land, buildings, and improvements where
  4 14 a fair event is conducted.
  4 15    NEW SUBSECTION.  4.  "State aid" means moneys appropriated
  4 16 by the treasurer of state to the association of Iowa fairs for
  4 17 payments to eligible fairs pursuant to this chapter.
  4 18    Sec. 9.  Section 174.2, unnumbered paragraphs 1 and 2, Code
  4 19 2003, are amended to read as follows:
  4 20    Each society A fair may hold annually a fair conduct a fair
  4 21 event to further interest in agriculture and to encourage the
  4 22 improvement of agricultural commodities and products,
  4 23 livestock, articles of domestic industry, implements, and
  4 24 other mechanical devices.  It may offer and award such
  4 25 premiums as will induce general competition.
  4 26    In addition to the powers granted herein the society in
  4 27 this chapter, a fair shall possess have the powers of a
  4 28 corporation not for pecuniary profit under the laws of this
  4 29 state and those powers enumerated in its articles of
  4 30 incorporation, such powers to be exercised before and after
  4 31 the holding of such fairs a fair event.
  4 32    Sec. 10.  Section 174.3, Code 2003, is amended to read as
  4 33 follows:
  4 34    174.3  CONTROL OF GROUNDS.
  4 35    An ordinance or resolution of a county or city shall not in
  5  1 any way impair the authority of the society, but it a fair.
  5  2 The fair shall have sole and exclusive control over and
  5  3 management of such a fair event and fairgrounds.
  5  4    Sec. 11.  Section 174.4, Code 2003, is amended to read as
  5  5 follows:
  5  6    174.4  PERMITS TO SELL ARTICLES.
  5  7    The management of any society a fair may grant a written
  5  8 permit to such persons as it thinks a person determined proper
  5  9 by the management, to sell fruit, provisions, and other
  5 10 articles not prohibited by law, under such regulations as the
  5 11 board of directors management may prescribe.
  5 12    Sec. 12.  Section 174.6, Code 2003, is amended to read as
  5 13 follows:
  5 14    174.6  REMOVAL OF OBSTRUCTIONS.
  5 15    All The management of a fair may order the removal of any
  5 16 obstruction to a fair event or on the fairgrounds, including
  5 17 but not limited to shows, swings, booths, tents, or vehicles,
  5 18 or any other thing that may obstruct the grounds of any
  5 19 society or the driveways thereof may be removed from the
  5 20 grounds on the order of the management.
  5 21    Sec. 13.  Section 174.8, Code 2003, is amended to read as
  5 22 follows:
  5 23    174.8  PUBLICATION OF FINANCIAL STATEMENT.
  5 24    Each society A fair shall annually publish in one newspaper
  5 25 of the county a financial statement of receipts and
  5 26 disbursements for the current year.
  5 27    Sec. 14.  Section 174.9, Code 2003, is amended to read as
  5 28 follows:
  5 29    174.9  STATE AID.
  5 30    Each An eligible society fair which is a member of the
  5 31 association of Iowa fairs as provided in the association's
  5 32 bylaws and which conducts a county fair event shall be
  5 33 entitled to receive state aid from the state as provided in
  5 34 this chapter.  The moneys paid as state aid must be used
  5 35 exclusively for capital expenditures relating to the
  6  1 acquisition of land for fairgrounds and improvements on the
  6  2 fairgrounds such as the construction of new facilities and the
  6  3 renovation of existing facilities.  In order to be eligible
  6  4 for state aid, a society fair must file with the association
  6  5 of Iowa fairs on or before November 1 15 of each year, a
  6  6 statement which shall show provides information as required by
  6  7 the association of Iowa fairs.  The information shall at least
  6  8 include all of the following:
  6  9    1.  The actual amount that the fair paid by it in cash
  6 10 premiums at its fair for the current year, which.  The
  6 11 statement must correspond with its published offer of
  6 12 premiums.
  6 13    2.  That A statement that no part of said the amount of
  6 14 state aid was paid for any of the following:
  6 15    a.  Entertainment venues, including but not limited to
  6 16 speed events, or to.
  6 17    b.  To secure games or amusements.
  6 18    c.  Supplies, rentals, equipment, payroll, inventory, fees,
  6 19 or routine operating expenses.
  6 20    3.  A full and accurate statement of the receipts and
  6 21 expenditures of the society fair for the current year and
  6 22 other.
  6 23    4.  A statement of statistical data relative to exhibits
  6 24 and attendance for the year.
  6 25    4.  5.  A copy of the published financial statement
  6 26 published as required by law, together with proof of such
  6 27 publication and a certified statement showing an itemized list
  6 28 of premiums awarded, and such other information as the
  6 29 association of Iowa fairs may require.
  6 30    Sec. 15.  Section 174.10, Code 2003, is amended to read as
  6 31 follows:
  6 32    174.10  APPROPRIATION == AVAILABILITY.
  6 33    1.  Any moneys appropriated for state aid for county or
  6 34 local fairs shall be paid to the office of treasurer of state
  6 35 to be allocated for allocation to the association of Iowa
  7  1 fairs for payments to be made by the association.  The
  7  2 association shall distribute the moneys to eligible societies
  7  3 fairs pursuant to this chapter.
  7  4    2.  a.  The association of Iowa fairs shall maintain a list
  7  5 of each society fair in a county which is a member of the
  7  6 association and conducts a fair event in that county as
  7  7 provided in this chapter.  If a county has more than one fair
  7  8 event, the association shall list the name of each society
  7  9 fair conducting a fair event in that county for three or more
  7 10 years.  The association of Iowa fairs shall not make a payment
  7 11 to a society fair under this chapter unless the society fair
  7 12 complies with section 174.9, and the name of the society fair
  7 13 appears on the association's list, and the fair is a member in
  7 14 good standing according to the bylaws of the association.
  7 15    b.  The association shall prepare a report at the end of
  7 16 each fiscal year concerning the state aid appropriated for
  7 17 county or local fairs that it received, the manner in which
  7 18 such aid was allocated to eligible societies fairs, and the
  7 19 manner in which the aid was expended by the societies fairs.
  7 20 The association shall submit the report to the governor and
  7 21 the general assembly by January February 1 of each year.  The
  7 22 association shall not use moneys appropriated for state aid
  7 23 for county or local fairs, or interest earned on such moneys,
  7 24 for administrative or other expenses.
  7 25    3.  The association's board of directors shall determine
  7 26 the amount of state aid for each fair which is eligible for
  7 27 state aid shall be equal allocated to each eligible fair.
  7 28    4.  If no society fair in a county qualifies is eligible to
  7 29 receive state aid, that county's share shall be divided
  7 30 equally among the counties with societies eligible for state
  7 31 aid, as provided in this section eligible fairs.
  7 32    5.  The board of supervisors, upon receiving a petition
  7 33 seeking to designate an official county fair which meets the
  7 34 requirements of section 331.306, shall submit to the
  7 35 registered voters of the county at the next general election
  8  1 following submission of the petition or at a special election
  8  2 if requested by the petitioners at no cost to the county, the
  8  3 question of which fair shall be designated as the official
  8  4 county fair.  Notice of the election shall be given as
  8  5 provided in section 49.53.  The fair receiving a majority of
  8  6 the votes cast on the question shall be designated the
  8  7 official county fair.
  8  8    Sec. 16.  Section 174.12, Code 2003, is amended to read as
  8  9 follows:
  8 10    174.12  PAYMENT OF STATE AID == PARTICIPATION BY DELEGATES.
  8 11    The association of Iowa fairs shall pay a society fair the
  8 12 amount due in state aid, less one thousand dollars, as
  8 13 provided in this chapter.  The association of Iowa fairs must
  8 14 certify to the treasurer that the society fair is eligible
  8 15 under this chapter to receive the amount to be paid to the
  8 16 society fair by the association.  The association shall pay
  8 17 the society fair the remaining one thousand dollars, if all of
  8 18 the following apply:
  8 19    1.  The secretary of the state fair board certifies to the
  8 20 association that the society fair had an accredited delegate
  8 21 in attendance at the annual convention for the election of
  8 22 members of the Iowa state fair board as provided in section
  8 23 173.2.
  8 24    2.  A district director of the association of Iowa fairs
  8 25 representing the district in which the county is located, and
  8 26 the director of the Iowa state fair board representing the
  8 27 congressional district state fair board district in which the
  8 28 county is located, certify to the association that the society
  8 29 fair had an accredited delegate in attendance at at least one
  8 30 of the district meeting meetings, and at the association's
  8 31 annual meeting.
  8 32    Any moneys appropriated in state aid moneys remaining due
  8 33 to the failure of a society fair to comply with this section
  8 34 shall be distributed equally among the societies eligible
  8 35 fairs which have qualified for state aid under this section.
  9  1 The treasurer of state shall allocate to the association of
  9  2 Iowa fairs the total amount to be paid by the association to
  9  3 eligible societies fairs under this chapter.
  9  4    Sec. 17.  Section 174.13, Code 2003, is amended to read as
  9  5 follows:
  9  6    174.13  COUNTY AID.
  9  7    The board of supervisors of the county in which a society
  9  8 fair is located may appropriate moneys to be used for fitting
  9  9 up or purchasing fairgrounds for the society or for aiding,
  9 10 constructing or restoring facilities on the fairgrounds,
  9 11 aiding 4=H club work, and payment of paying agricultural and
  9 12 livestock premiums in connection with the fair, if the society
  9 13 owns or leases at least ten acres of land for the fairground
  9 14 and owns or leases buildings and improvements on the land of
  9 15 at least eight thousand dollars in value event.  A society may
  9 16 meet the requirement of owning or leasing land, buildings, and
  9 17 improvements through ownership by a joint entity under chapter
  9 18 28E, of which the society is a part.
  9 19    Sec. 18.  Section 174.14, Code 2003, is amended to read as
  9 20 follows:
  9 21    174.14  FAIRGROUND AID.
  9 22    1.  The board of supervisors of a county which has acquired
  9 23 real estate for county or district fair purposes fairgrounds
  9 24 and which has a society fair using the real estate
  9 25 fairgrounds, may appropriate moneys to be used for the any of
  9 26 the following:
  9 27    a.  The erection and repair of buildings or other permanent
  9 28 improvements on the real estate, and for the fairgrounds.
  9 29    b.  The payment of debts contracted in the erection or
  9 30 repair and payment of agricultural and livestock premiums.
  9 31    2.  In addition, the net proceeds from the sale of
  9 32 fairground sites and real estate or structures on or
  9 33 improvements on the sites fairgrounds shall be used for the
  9 34 purchase of real estate or the erection of permanent buildings
  9 35 and installation of improvements on a new fairground site
 10  1 fairgrounds, or the cost of moving structures from the old
 10  2 fairgrounds to the new site fairgrounds.
 10  3    Sec. 19.  Section 174.15, Code 2003, is amended to read as
 10  4 follows:
 10  5    174.15  PURCHASE AND MANAGEMENT.
 10  6    Title to land purchased or received for fairground purposes
 10  7 of conducting a fair event shall be taken in the name of the
 10  8 county or a society, but fair.  However, the board of
 10  9 supervisors shall place it the land under the control and
 10 10 management of a society fair.  The society fair may act as
 10 11 agent for the county in the erection of buildings, maintenance
 10 12 of grounds and the fairgrounds, including the buildings, or
 10 13 and improvements constructed on the grounds.  Title to new
 10 14 buildings or improvements shall be taken in the name of the
 10 15 county or a society, but fair.  However, the county is not
 10 16 liable for the improvements or expenditures for them.
 10 17    Sec. 20.  Section 174.16, Code 2003, is amended to read as
 10 18 follows:
 10 19    174.16  TERMINATION OF RIGHTS OF SOCIETY FAIR.
 10 20    The right of such society a fair to the control and
 10 21 management of said real estate its fairgrounds may be
 10 22 terminated by the board of supervisors whenever well conducted
 10 23 agricultural fairs fair events are not annually held thereon
 10 24 by such society on the fairgrounds.
 10 25    Sec. 21.  Section 174.17, subsection 1, Code 2003, is
 10 26 amended to read as follows:
 10 27    1.  The governing body of a society fair may issue bonds
 10 28 payable from revenue generated by the operations of the county
 10 29 fair event and the use or rental of the real and personal
 10 30 property owned or leased by the society fair.  The governing
 10 31 body of a society fair shall comply with all of the following
 10 32 procedures in issuing such bonds:
 10 33    a.  A society fair may institute proceedings for the
 10 34 issuance of bonds by causing a notice of the proposal to issue
 10 35 the bonds to be published at least once in a newspaper of
 11  1 general circulation within the county at least ten days prior
 11  2 to the meeting at which the society fair proposes to take
 11  3 action for the issuance of the bonds.  The notice shall
 11  4 include a statement of the amount and purpose of the bonds,
 11  5 the maximum rate of interest the bonds are to bear, and the
 11  6 right to petition for an election.
 11  7    b.  If at any time before the date fixed for taking action
 11  8 for the issuance of the bonds, a petition signed by three
 11  9 percent of the registered voters of the county is filed with
 11 10 the board of supervisors, asking that the question of issuing
 11 11 the bonds be submitted to the registered voters, the board of
 11 12 supervisors shall either by resolution declare the proposal to
 11 13 issue the bonds to have been abandoned or shall direct the
 11 14 county commissioner of elections to call a special election
 11 15 upon the question of issuing the bonds.  The proposition of
 11 16 issuing bonds under this subsection is not approved unless the
 11 17 vote in favor of the proposition is equal to at least sixty
 11 18 percent of the vote cast.  If a petition is not filed, or if a
 11 19 petition is filed and the proposition of issuing the bonds is
 11 20 approved at an election, the board of supervisors acting on
 11 21 behalf of the society fair may proceed with the authorization
 11 22 and issuance of the bonds.  Bonds may be issued for the
 11 23 purpose of refunding outstanding and previously issued bonds
 11 24 under this subsection without otherwise complying with the
 11 25 provisions of this subsection.
 11 26    c.  All bonds issued under this subsection shall be payable
 11 27 solely from and shall be secured by an irrevocable pledge of a
 11 28 sufficient portion of the net rents, profits, and income
 11 29 derived from the operation of the county fair event and the
 11 30 use or rental of the real and personal property owned or
 11 31 leased by the society fair.  Bonds issued pursuant to this
 11 32 section shall not constitute an indebtedness within the
 11 33 meaning of any constitutional or statutory debt limitation or
 11 34 restriction, and shall not be subject to the provisions of any
 11 35 other law or charter relating to the authorization, issuance,
 12  1 or sale of bonds.  Bonds issued under this subsection shall
 12  2 not limit or restrict the authority of the society fair as
 12  3 otherwise provided by law.
 12  4    Sec. 22.  Section 174.17, subsection 3, Code 2003, is
 12  5 amended to read as follows:
 12  6    3.  For purposes of this section, "society" means a
 12  7 society, as defined by section 174.1, that conducts a county
 12  8 or local In order for the governing body of a fair to issue
 12  9 bonds under this section, the governing body must conduct a
 12 10 fair event that has a verifiable annual attendance of at least
 12 11 one hundred fifty thousand persons and annual outside gate
 12 12 admission revenues of at least four hundred thousand dollars.
 12 13    Sec. 23.  Section 174.19, Code 2003, is amended to read as
 12 14 follows:
 12 15    174.19  REPORT OF COUNTY AID.
 12 16    A society fair shall not receive an appropriation from a
 12 17 county under this chapter, until the society fair submits a
 12 18 financial statement to the county board of supervisors.  The
 12 19 statement shall show all expenditures of moneys appropriated
 12 20 to the society fair from the county in the previous year.  The
 12 21 financial statement submitted to the board of supervisors
 12 22 shall include vouchers related to the expenditures.
 12 23    Sec. 24.  Section 174.20, Code 2003, is amended to read as
 12 24 follows:
 12 25    174.20  FRAUDULENT ENTRIES OF HORSES.
 12 26    No A person, partnership, company, or corporation shall not
 12 27 knowingly enter or cause to be entered any horse of any age or
 12 28 sex under an assumed name, or out of its proper class, to
 12 29 compete for any purse, prize, premium, stake, or sweepstake
 12 30 offered or given by any agricultural or other society,
 12 31 association, person, or persons in the state, or drive any
 12 32 such horse under an assumed name, or out of its proper class,
 12 33 where such prize, purse, premium, stake, or sweepstake is to
 12 34 be decided by a contest of speed.
 12 35    Sec. 25.  Section 174.22, Code 2003, is amended to read as
 13  1 follows:
 13  2    174.22  ENTRY UNDER CHANGED NAME.
 13  3    The name of any horse for the purpose of entry for
 13  4 competition in any contest of speed shall not be changed after
 13  5 having once contested for a prize, purse, premium, stake, or
 13  6 sweepstake, except as provided by the code of printed rules of
 13  7 the society fair or association under which the contest is
 13  8 advertised to be conducted, unless the former name is given.
 13  9    Sec. 26.  Section 174.23, Code 2003, is amended to read as
 13 10 follows:
 13 11    174.23  CLASS DETERMINED.
 13 12    The class to which a horse belongs for the purpose of an
 13 13 entry in any contest of speed, as provided by the printed
 13 14 rules of the society fair or association under which such
 13 15 contest is to be made, shall be determined by the public
 13 16 record of said horse in any such former contest.
 13 17    Sec. 27.  Section 331.303, subsection 5, Code 2003, is
 13 18 amended by striking the subsection.
 13 19    Sec. 28.  Section 322.5, subsection 2, paragraph a,
 13 20 subparagraph (2), Code 2003, is amended to read as follows:
 13 21    (2)  Display, offer for sale, and negotiate sales of new
 13 22 motor vehicles at county or district fairs fair events, as
 13 23 described defined in chapter 174, vehicle shows, and vehicle
 13 24 exhibitions, upon application for and receipt of a temporary
 13 25 permit issued by the department.  Such activities may only be
 13 26 conducted at fairs, vehicle shows, and vehicle exhibitions
 13 27 that are held in the county of the motor vehicle dealer's
 13 28 principal place of business.  A sale of a motor vehicle by a
 13 29 motor vehicle dealer shall not be completed and an agreement
 13 30 for the sale of a motor vehicle shall not be signed at a fair,
 13 31 vehicle show, or vehicle exhibition.  All such sales shall be
 13 32 consummated at the motor vehicle dealer's principal place of
 13 33 business.
 13 34    Sec. 29.  Section 422.45, subsection 50, Code Supplement
 13 35 2003, is amended to read as follows:
 14  1    50.  The gross receipts from sales or services rendered,
 14  2 furnished, or performed by the state fair organized under
 14  3 chapter 173 or a fair society organized under chapter 174.
 14  4    Sec. 30.  NEW SECTION.  669.25  LIABILITY.
 14  5    A person who performs services for a fair, as defined in
 14  6 section 174.1, and is not a full=time employee of the fair is
 14  7 not personally liable for a claim based upon an act or
 14  8 omission of the person performed in the discharge of the
 14  9 person's duties, except for acts or omissions which involve
 14 10 intentional misconduct or knowing violation of the law, or for
 14 11 a transaction from which the person derives an improper
 14 12 personal benefit.
 14 13    Sec. 31.  Section 717D.3, subsection 1, paragraph b, Code
 14 14 2003, is amended to read as follows:
 14 15    b.  A fair event as defined in section 174.1.
 14 16    Sec. 32.  Section 174.5, Code 2003, is repealed.
 14 17                           EXPLANATION
 14 18    This bill amends provisions in Code chapter 174 regulating
 14 19 county and district fairs.  It amends Code section 174.1 to
 14 20 revise the definition of key terms used in the Code chapter,
 14 21 including what constitutes a fair and a society which conducts
 14 22 a fair.  It provides a specific definition for fairgrounds and
 14 23 provides that in order to qualify as a county or district
 14 24 fair, the fairgrounds, buildings, and improvements must have a
 14 25 fair market value of at least $80,000 (increased from $8,000).
 14 26 It makes a number of changes to provisions in the Code chapter
 14 27 and in other provisions of the Code in order to conform with
 14 28 the definitions or how terms are generally used in the Code
 14 29 chapter as amended by the bill.  Under the bill, the term
 14 30 "society" is changed to "fair" and the term "fair" is changed
 14 31 to "fair event".
 14 32    The bill amends a number of provisions providing for state
 14 33 aid.  Under current law, moneys appropriated to the treasurer
 14 34 of state are allocated to the association of Iowa fairs
 14 35 (association), which in turn distributes the moneys to
 15  1 eligible societies.  The bill provides that a society must use
 15  2 state aid moneys for the acquisition of land and capital
 15  3 improvements.  Under Code section 174.9, societies must file a
 15  4 statement with the association each year, and the bill makes a
 15  5 number of changes to those requirements.  The filing deadline
 15  6 is changed from November 1 to November 15.  The bill also
 15  7 changes when the association must submit a report to the
 15  8 governor and general assembly from January 1 to February 1.
 15  9 The bill provides that as a condition of eligibility a society
 15 10 cannot use state aid to pay for entertainment venues or for
 15 11 equipment, supplies, or miscellaneous expenses.  The bill
 15 12 provides that in order to be eligible, a society must be a
 15 13 member in good standing with the association.  The bill
 15 14 eliminates a provision allowing a board of supervisors, upon
 15 15 petition, to submit to the voters a referendum upon the
 15 16 question of designating an official county fair.  The bill
 15 17 amends related provisions in Code section 174.10, which
 15 18 provide that state aid is distributed equally among all
 15 19 eligible societies conducting county fairs.  The bill provides
 15 20 that the association's board of directors provides for the
 15 21 distribution.
 15 22    The bill amends provisions in Code section 174.12, which
 15 23 allows the association to pay $1,000 in state aid to a society
 15 24 upon condition that it participate in certain functions such
 15 25 as the election of members to the Iowa state fair board.  The
 15 26 bill provides that a society must send one delegate to the
 15 27 association's annual meeting.
 15 28    The bill eliminates a provision which authorizes a society
 15 29 to appoint special police.
 15 30    The bill takes effect upon enactment.
 15 31 LSB 5589SV 80
 15 32 da/gg/14.1