HB 1302 Summary

• Amends Chapter 421 and 421C of Hawaii Revised Statutes to add provisions allowing agricultural and consumer cooperatives to operate as nonprofit resale agents, paying members or patrons the resale price minus a uniform expense charge specified in the contract or determined by directors.

• Expands the definition of "person" in cooperative law to include sacred species and natural ecosystems, which may participate in cooperatives through a guardian speaking on their behalf and in their best interest.

• Adds land leasing to members as an enumerated cooperative activity purpose under Section 421-2.

• Modifies referendum procedures to allow member-initiated referendums through affirmative vote of two-thirds of members voting at a regular or special meeting, in addition to the existing director-initiated referendum process.

• Permits associations formed under either chapter to convert between cooperative association status or remain as agricultural or consumer cooperatives, and clarifies that cooperative membership stock and patronage equity are exempt securities.