Bill > SB1030

This bill establishes the "Decentralized Unincorporated Nonprofit Association Act" to recognize decentralized unincorporated nonprofit associations as legal entities. It defines such an association as one with at least 100 members joined by mutual consent for a common nonprofit purpose, which has elected to operate under this act and is not formed under other laws. The act outlines various provisions, including definitions for terms like "administrator" (a person managing tasks at the membership's direction), "digital asset" (digital representation of economic rights), "distributed ledger technology" (like blockchain), and "governing principles" (all agreements and rules governing the association's operation). It clarifies that these associations can engage in profit-making activities as long as profits further their nonprofit purpose, but generally cannot distribute profits to members or administrators, though reasonable compensation for services is allowed. The bill also addresses property rights, liability protection for members and administrators, the association's capacity to sue and be sued, requirements for service of process, venue, perpetual existence, member admission and resignation, duties of members, transferability of member interests, member approval processes, the utilization of distributed ledger technology and smart contracts for governance, administrator selection and duties, the right to inspect records, indemnification for members and administrators, procedures for winding up and termination, mergers with other organizations, and the conversion of existing unincorporated nonprofit associations to operate under this new act. The act is set to become effective on July 1, 2026.

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http://www.wvlegislature.gov/Bill_Status/Bills_history.cfm?input=1030&year=2026&sessiontype=RS&btype=bill