SB498 Summary

• Establishes Hawaii Cooperative Law, creating a comprehensive legal framework for forming and governing cooperatives, including worker cooperatives, agricultural cooperatives, and renewable energy cooperatives.

• Defines cooperative characteristics including operation at cost with patronage-based distribution, limited dividends on stock, member voting rights, mutual benefit purposes, and member liability protection.

• Authorizes worker cooperatives as a specific type allowing worker-members to share ownership and control based on labor contributed, with options for capital account structures and collective board governance.

• Requires annual reporting to the state, maintains member meeting and voting procedures, allows member inspection of records, and establishes governance through board of directors and bylaws.

• Provides dissolution procedures, dissenters' rights for major transactions, and allows existing cooperatives to elect coverage under this new chapter.