sb 0106

CHAPTER 197

SB 106 - FINAL VERSION

AN ACT relative to consumers' cooperative associations.

SPONSORS: Sen. Below, Dist 5; Rep. Owen, Merr 6

I. Permits amendment of the bylaws of a consumers' cooperative association by a majority of the members present at a regular meeting.

II. Permits unclaimed net savings and dividends to be placed in a consumers' cooperative association's reserve fund.

III. Permits a consumers' cooperative association to defer payment of de minimis net savings to members and patrons.

IV. Provides that abandoned membership interests in a consumers' cooperative association revert to the association.

V. Permits the bylaws of a consumers' cooperative association to provide for absentee voting.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT relative to consumers' cooperative associations.

Be it Enacted by the Senate and House of Representatives in General Court convened:

197:1 Consumers' Cooperative Associations; Adoption of Bylaws; Amendment. Amend RSA 301-A:10 to read as follows:

301-A:10 Adoption of Bylaws. Bylaws shall be adopted[~~, amended,~~] or repealed by at least a majority vote of the members. Bylaws shall be amended by at least a majority vote of members present at a regular meeting of the association or by at least a majority vote of members casting votes if the bylaws permit voting by absentee ballot, unless the bylaws require at least a majority vote of all members. The majority vote required to amend the bylaws, if greater than a simple majority, shall be specified in either the certificate of organization or the bylaws.

197:2 Consumers' Cooperative Associations; Distribution of Net Savings; Accumulated Sums. Amend RSA 301-A:28, IV(d) to read as follows:

(d) If within any periods of time specified in the articles or bylaws: (1) any subscriber has not accumulated and paid in the amount of capital subscribed for; or (2) any nonmember patron has not accumulated in his or her individual account the sum necessary for membership; or (3) any nonmember patron has accumulated the sum necessary for membership but neither requests nor agrees to become a member, or fails to comply with the provisions of the bylaws, if any, for admission to membership, then the amounts so accumulated or paid in and any part of the general fund for nonmember patrons which has not been allocated to individual nonmember patrons shall go to the [~~educational~~] reserve fund. Thereafter, no member or other patron shall have any rights in said paid-in capital or accumulated savings returns as such;

197:3 New Subparagraph; Consumers' Cooperative Associations; Distribution of Net Savings; De Minimis Savings. Amend RSA 301-A:28, IV by inserting after subparagraph (d) the following new subparagraph:

(e) An association may defer payment of net savings which would otherwise be distributed to a member or patron when the total amount that would be distributed to the member or patron is de minimis. The amount of the deferred payment shall be added to the next net savings apportioned to the member or patron. For purposes of this section, "de minimis" means any amount less than 10 times the cost of a first-class United States postage stamp.

197:4 New Section; Consumers' Cooperative Associations; Abandonment of Interest. Amend RSA 301-A by inserting after section 28 the following new section:

301-A:28-a Abandonment of Interest. If net savings or dividends have not been claimed by a member or patron for 5 years, the member or patron has not corresponded with the association in writing within 5 years, and the current address of the member or patron is unknown, the association shall make a good faith effort to locate the member or patron. Such good faith effort shall include, at a minimum, a first class letter mailed to the member or patron's last known mailing address, and notice published in a newspaper of general circulation in the community of the association's primary activity. If the association does not receive a response from the member or patron within 90 days of its location efforts, all net savings, dividends, and membership interests attributable to the member or patron shall be presumed to be abandoned, and the net savings and dividends shall be placed in the reserve fund and the membership interest shall revert to the association.

197:5 Abandoned Intangible Property; Consumers' Cooperative Associations Excepted. Amend the introductory paragraph of RSA 471-C:3-a, I to read as follows:

I. Any intangible property, including but not limited to any interest, dividend, or other earnings on such property, less any lawful charges, held by a business association other than a consumers' cooperative association, federal, state, or local government or governmental subdivision, agency, or entity, or any other person or entity other than a consumers' cooperative association, regardless of where the holder may be found, the owner of which has not claimed or corresponded in writing concerning the property within 3 years after the date prescribed for payment or delivery, shall be presumed abandoned and subject to the custody of the state as unclaimed property, if:

197:6 Unclaimed or Abandoned Property; Stock and Other Intangible Interests in Business Associations; Consumers' Cooperative Associations Excepted. Amend the introductory paragraph of RSA 471-C:10, I to read as follows:

I. Except as provided in [~~paragraphs II and~~] paragraph V, stock or other intangible ownership interest in a business association other than a consumers' cooperative association, the existence of which is evidenced by records available to the association, is presumed abandoned and, with respect to the interest, the association is the holder, if a dividend, distribution, or other sum payable as a result of the interest has remained unclaimed by the owner for 5 years and the owner within 5 years has not:

197:7 Consumers' Cooperative Associations; Voting; Absentee Ballot. Amend RSA 301-A:24 to read as follows:

301-A:24 Voting. Each member of an association shall have only one vote. Voting power shall be distributed on the basis of one vote per natural person or member. The certificate of organization may prescribe the voting rights of member associations in another consumer cooperative; provided, that voting by such member associations shall be based strictly on a one-member-one-vote rule regardless of the number of shares held by such associations. The bylaws of the association may provide methods by which members are allowed to vote by absentee ballot on the election of officers and other matters submitted to a vote of the members.