HB 1303 - Hawaii Cooperative Law Summary

• Establishes comprehensive Hawaii Cooperative Law framework allowing entities to organize as cooperatives for lawful business purposes, including worker cooperatives, agricultural cooperatives, and renewable energy cooperatives.

• Defines cooperative characteristics including cost-based operations, limited dividends on stock, member voting rights, mutual benefit purpose, and member liability limited to unpaid capital contributions.

• Creates worker cooperative option with democratic worker-member control, patronage-based earnings distribution, and capital account structures; worker cooperatives can only merge with other worker cooperatives.

• Requires cooperatives to file annual reports with Department of Commerce and Consumer Affairs containing business operations data, financial statements, and member information; establishes membership meeting and voting procedures with one-vote-per-member standard.

• Provides governance structure including member meetings, board of directors (minimum three members), officer roles, and member inspection rights; permits member removal of directors for cause through written petition process.