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.