(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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