Loading chat...
IN HB1236
Bill
Status
1/10/2017
Primary Sponsor
Donald Lehe
Click for details
AI Summary
HB 1236 Summary
-
Makes it unlawful for non-cooperative business entities to use the terms "cooperative," "co-op," "mutual," or derivatives thereof in their business name if doing so would mislead the public about their status as a cooperative or mutual entity.
-
Prohibits non-cooperative businesses from advertising or representing themselves as cooperative or mutual entities or as operating on a cooperative or mutual basis.
-
Grants the Department of Agriculture regulatory authority to enforce restrictions on use of these terms and requires the Secretary of State to forward relevant filings to the Department of Agriculture for review.
-
Authorizes enforcement through civil penalties of $500 per day per violation, revocation of retail merchant certificates, and administrative dissolution of violating business entities by the Secretary of State.
-
Establishes procedures for hearings, consent agreements, and judicial review of enforcement actions, with most proceedings exempt from standard administrative procedures.
-
Effective July 1, 2017.
Legislative Description
Doing business or marketing as a cooperative. Provides that it is unlawful for a business entity that is not a cooperative or mutual entity to do the following: (1) Use the terms "cooperative", "co-op", or "mutual" or any derivative of those terms in a business entity name if the use of the term would create a substantial likelihood of misleading the public by implying that the business entity is a cooperative or mutual entity. (2) Advertise or represent the business entity to the public, its customers, or prospective customers as a cooperative or mutual entity or as an entity operating
Last Action
Representatives Baird, Wright, Taylor J added as coauthors
2/2/2017