Bill > SB277

This bill establishes a new legal framework for "decentralized unincorporated nonprofit associations," which are defined as organizations with at least 100 members joined by mutual consent, often for purposes related to digital assets and distributed ledger technology (like blockchain), and that elect to operate under this new law. The bill outlines how these associations can be formed, managed, and dissolved, specifying that they can engage in profit-making activities as long as profits are used for their nonprofit purpose, and clarifies that members are generally not liable for the association's debts or actions. It also details rules for administrators, member rights, property transactions, and dispute resolution, including provisions for using smart contracts and distributed ledger technology for governance and operations, and sets an effective date of October 1, 2026.