HB 1631

As described below, this bill repeals the Tennessee State Fair and Exposition Act and enacts the Tennessee Agricultural Fair and Livestock Show Act and the Tennessee State Fair Act. TENNESSEE AGRICULTURAL FAIR AND LIVESTOCK SHOW ACT This Act removes present law pertaining to state aid for agricultural fairs and, instead, authorizes the commissioner of agriculture ("commissioner"") to do all of the following for agricultural fairs and livestock shows:  Receive and disburse state aid .  Enter into agreements with third parties for the provision of goods and services necessary to effectuate this Act.  Expend a portion of state aid for administration costs, including educating persons conducting agricultural fairs or livestock shows in the state and employing full-time department employees, as necessary, to promote and improve the operation of agricultural fairs and livestock shows in this state.  Grant a portion of state aid to entities that, in the discretion of the commissioner, advance agricultural interests in this state but that do not otherwise meet the definition of agricultural fairs and livestock shows under this Act.  Delegate authority to department personnel as necessary for efficient administration of this Act. As used in this Act, an ""a gricultural fair"" means a not-for-profit agricultural exhibition, conducted at least annually, that contributes to agricultural development through educational programs, activities, demonstrations, contests, or exhibits, and a ""livestock show"" means a not-for-profit exhibition, conducted at least annually and independently of an agricultural fair, where livestock are exhibited and judged on specific phenotypical breed traits for their respective breed standard. Appropriations This Act requires a ll funds appropriated by the general assembly for the administration and implementation of this Act to be annually disbursed by the department of agriculture (""department""). Disbursement This Act requires t he department to administer a program to disburse state aid to finance premiums, as a cash award presented to the winner of a competition or exhibit within an approved class, paid by agricultural fairs and livestock shows. The program must, at a minimum, a nnually disburse state aid based on premiums paid by such fairs and shows, and a uthorize the disbursement of state aid for premiums only for exhibition of any of the following livestock, products, commodities, projects, or displays:  Cattle, swine, sheep, and goats ;  M ules shown to halter or farm vehicles, jack stock, and light horses to halter ;  Poultry, meat, eggs, and dairy products ;  Honey ;  Field, garden, and horticultural products ;  Family and consumer science displays ;  Junior agriculture and forestry projects ;  Agriculture and forestry educational exhibits ; and  Other classes established by the commissioner through rule . However, this Act prohibits an agricultural fair or livestock show from receiving state aid for more than 50% of premiums paid in any one year unless an agricultural fair is granted an award of merit. Awards This Act also requires t he department to administer a program to disburse state aid as an award of merit to agricultural fairs that attain excellence in fair operations. The program must, at a minimum:  Include classifications of agricultural fairs based on area and population served .  Annually designate a champion, first runner-up, and second runner-up within each classification, if the number of agricultural fairs in the classification allows .  Award the champion within each classification an amount equal to 100% of the state aid paid to that agricultural fair for the same year in which the award is made .  Award the first runner-up, second runner-up, and other agricultural fairs participating in the program an amount less than 100% of state aid received for the same year in which the award is made .  Establish criteria for determining those agricultural fairs that are worthy of designation as a champion, first runner-up, or second runner-up.  Limit participation in the program to agricultural fairs that paid at least $1, 000 in premiums during the program cycle .  Issue awards of merit exclusively to agricultural fairs and not to livestock shows or other exhibitions or entities. For the purpose of so disbursing state aid, this Act authorizes the commissioner to receive recommendations from officers and directors of any state association of fairs to determine which agricultural fairs receive awards of merit. Return of aid Upon the request of the department, this Act requires an agricultural fair or livestock show that is not in compliance with this Act or the rules promulgated by the department, or that is otherwise ineligible to receive state aid from the department at the time it was granted state aid, to return to the department the full amount of state aid received. The commissioner may institute judicial proceedings for collection of state aid in a court of competent jurisdiction. Rulemaking This Act requires t he commissioner to promulgate rules for all of the following :  Eligibility criteria of agricultural fairs and livestock shows to receive state aid .  Application processes for agricultural fairs and livestock shows to request state aid .  Reporting requirements for agricultural fairs and livestock shows to demonstrate premiums paid .  Record requirements for payment of premiums by agricultural fairs and livestock shows seeking state aid including, the name of each premium winner, the amount paid to each winner, and instruments used to pay premiums .  Classifications of agricultural fairs based on area and population served .  Calculation and implementation of maximum disbursement calculations applicable for payment of premiums and awards of merit. TENNESSEE STATE FAIR ACT This Act places the department in charge of the annual administration of the state fair and authorizes t he commissioner to do all of the following:  Select an operator for the purpose of managing and conducting at least one fair serving the state annually.  Enter into any contracts and agreements necessary to effectuate this Act .  Accept and administer gifts, contributions, and bequests of unrestricted funds or property from individuals, foundations, corporations, and other organizations or institutions for the purpose of promoting and advancing a state fair.  Grant leases on all or any part of the property, land, or buildings under jurisdiction of the department for advancement of a state fair.  Require, as frequently as the commissioner deems necessary, submission of operations reports, financial documents, and audit findings of the operator, as they relate to administration of the state fair.  Promulgate rules to effectuate this Act .  Form advisory panels from qualified persons within the state to obtain advice and counsel on matters pertaining to the state fair. This Act also prohibits the u se of the name ""Tennessee State Fair"" or any other title connoting a state fair of this state without permission from the department, which the department may grant in its sole discretion."