HB1302 Summary

• Adds three new sections to Chapter 421 (agricultural cooperatives) allowing volunteers to be exempted under section 421C-33, permitting nonprofits operation as resale agents with uniform expense charges, and allowing associations to convert to or remain as agricultural cooperatives.

• Adds three new sections to Chapter 421C (consumer cooperatives) with similar provisions including referendum procedures, nonprofit resale agent operations, and conversion flexibility for consumer cooperatives.

• Expands the definition of "person" in section 421-1 to include sacred species and natural ecosystems that may participate in cooperatives through a guardian acting in their best interest.

• Adds leasing land to members as a new cooperative purpose in section 421-2 and renumbers existing purposes accordingly.

• Modifies section 421-17 to allow referendums on board-approved policy matters by demand of two-fifths of directors or by affirmative vote of two-thirds of members at regular or special meetings.

• Clarifies section 421C-36 to exempt membership stock, certificates, patronage equity, and preferred stock issued by cooperatives from securities registration requirements.