260 - Formation of association; by-laws; inspection and disposition of funds.
§ 260. Formation of association; by-laws; inspection and disposition of funds. 1. The officers, non-commissioned officers, petty officers or members of any unit or units of the organized militia may organize themselves into an association or associations of which the senior officer, senior non-commissioned officer or senior petty officer, as the case may be, shall be president; provided, however, that such associations shall by an affirmative vote of two-thirds of all their members adopt by-laws not inconsistent with this chapter, and which shall conform to regulations issued pursuant to this chapter and be submitted to the adjutant general for his approval; and which by-laws shall provide that the treasurer of such association shall furnish proper security for the faithful performance of his duties; that all funds of the association shall be kept in a bank of deposit in a separate account in the name of the association; that checks upon such funds shall be signed both by the treasurer and the president of such association; and that the books and accounts of such associations shall at all times be open to the inspection of any member of the association, the commanding officer of the unit concerned and any officer whose duty it is to inspect the organized militia. Such by-laws may contain such other provisions as are not inconsistent with the provisions of this chapter and of regulations issued pursuant thereto, and when approved by the adjutant general such by-laws shall be binding upon all members of such association; but they may be altered in the manner provided for their adoption from time to time as may be found necessary, provided, however, that the essential provisions hereinabove set forth shall in no case be omitted or qualified. Every association already formed which has not adopted by-laws as herein provided and every association heretofore formed which has adopted by-laws that do not contain the essential requirements hereinabove set forth, shall adopt revised by-laws containing such requirements and submit the same for approval to the adjutant general, except that the adjutant general may direct the revision of by-laws heretofore approved by the commanding officer of any force of the organized militia to conform with any of the requirements of this section and it shall not be necessary to submit such revised by-laws to the adjutant general for his approval unless he expressly requires such action. 2. Any funds used for the benefit of units of the organized militia, other than those of associations referred to in this section or funds derived from the state pursuant to the provisions of this chapter, will be administered by the commanding officer of the unit concerned and a treasurer appointed by him and will be kept, expended, accounted for and subject to inspection in the manner prescribed by regulations issued pursuant to this chapter. 3. In case a unit of the organized militia is disbanded, deactivated or ordered into the active military service of the United States, the adjutant general is authorized and empowered to direct the disposition of any moneys and other property remaining in the hands of its associations referred to in this section, and of other funds remaining in the hands of or used for the benefit of the unit, other than funds of such associations or funds derived from the state pursuant to this chapter. 4. The officers, noncommissioned officers, petty officers or members of any unit or units of the organized militia may organize themselves into a not-for-profit corporation or not-for-profit corporations pursuant to the not-for-profit corporation law for the purposes of promoting the esprit de corps, morale and welfare of such personnel and for such other lawful purposes as the adjutant general shall promulgate by rules and regulations. Such not-for-profit corporation may dispenseliquor, beer and wine to be consumed on the premises provided a retail license for on-premises consumption is obtained therefor. Notwithstanding the provisions of any other law to the contrary, there shall be no fees paid to the department of state for filing a certificate of incorporation as provided herein; provided however that such certificate of incorporation shall have endorsed thereon or annexed thereto the approval of the adjutant general.