Bill > HB483

This bill establishes new provisions for "decentralized unincorporated nonprofit associations," which are defined as groups of at least 100 members joined by mutual consent in digital activity under an agreement for a common nonprofit purpose, often related to managing distributed ledger technology or smart contracts. These associations can engage in profit-making activities, but profits must be used for their nonprofit purpose, and distributions to members or administrators are generally prohibited, with exceptions for reasonable compensation, benefits, repurchasing membership interests, or distributions upon dissolution. The bill outlines how these associations can acquire and transfer property, including requiring a recorded "statement of authority" for real property transfers, and establishes them as separate legal entities from their members, limiting member liability for the association's actions. It also provides mechanisms for appointing an agent to receive legal service of process, defines how these associations can be dissolved, and clarifies member rights, including the ability to resign and the limited fiduciary duties members owe. The bill further allows for governance through distributed ledger technology, such as smart contracts, and defines the roles and potential limitations of liability for "administrators," who are individuals authorized to perform administrative tasks. Finally, it details member and administrator rights to access records, the association's ability to purchase insurance for them, and procedures for winding up the association's affairs, with distributions of remaining assets going to similar nonprofit entities, members, or unclaimed property laws.

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