(1) Using the department's forms, the board of trustees of any fair or youth show may apply to the department for allocations from the state fair fund.
(2)(a) The director may allocate ninety-five percent of the state fair fund, including its interest income under RCW
43.79A.040, to applicant agricultural fairs, distributed according to merit as measured by a merit rating to be set up by the director. This merit rating must take into account such factors as area and population served, open and/or youth participation, attendance, gate receipts, number and type of exhibits, premiums paid, community support, evidence of successful achievement of the aims and purposes of the fair, extent of improvements made to grounds and facilities from year to year, and overall condition and appearance of grounds and facilities.
(b) The department may use up to ten percent of the amount allocated in (a) of this subsection for special assistance to any participating fair or fairs.
(c) The department may use the remaining five percent of money in the state fair fund for expenses incurred in the administration of this chapter, which may include the fair commission expenses approved by the director.
(3) The division and payment of funds authorized in this section shall occur at such times as the director may prescribe.