S.B. 2712 Summary

• Amends Chapter 421 (agricultural cooperatives) and Chapter 421C (consumer cooperatives) to allow cooperatives to operate as nonprofit agents selling members' or nonmember patrons' products, paying the resale price less a uniform handling charge specified in the contract or determined by directors.

• Permits cooperatives to purchase goods or obtain and perform services on a nonprofit basis in a manner similar to product resale operations.

• Allows associations formed under both chapters to convert to a cooperative association or remain in their original classification (agricultural or consumer cooperative).

• Adds land leasing to members as an allowable cooperative purpose under Chapter 421, and requires that 75% of agricultural products be of Hawaiian origin.

• Modifies referendum procedures to allow members to demand policy referendums either by two-thirds affirmative vote at regular or special meetings, in addition to the existing two-fifths director requirement.