Bill Text: HI SB495 | 2022 | Regular Session | Amended
Bill Title: Relating To Agriculture.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Introduced - Dead) 2021-12-10 - Carried over to 2022 Regular Session. [SB495 Detail]
Download: Hawaii-2022-SB495-Amended.html
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THE SENATE |
S.B. NO. |
495 |
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THIRTY-FIRST LEGISLATURE, 2021 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO AGRICULTURE.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 421, Hawaii Revised Statutes, is amended by adding three new sections to be appropriately designated and to read as follows:
"§421- Volunteers exempted. Section
421C-33 shall apply to associations formed under this chapter.
§421- Operation as an agent on nonprofit basis.
(a) A cooperative may operate as an agent
to sell the products of its members or nonmember patrons on a nonprofit basis by
contracting to pay the members or nonmember patrons the resale price for products
sold by them to or through the cooperative, less a uniform charge to cover the expenses
involved in the handling of these products; provided that:
(1) The
resale price shall be the actual resale price or a price based upon
the average price during any period for products of the same type and quantity;
and
(2) The uniform charge
for expenses shall be:
(A) Specified
in the contract;
(B) Made
otherwise ascertainable; or
(C) Left
for determination by the directors.
(b) A cooperative that desires to purchase goods or
obtain or perform services under this chapter may operate on a nonprofit basis in
a manner similar to that described in this section.
§421- General cooperative status. An association formed under this chapter may convert to a cooperative association or remain an agricultural cooperative."
SECTION 2. Chapter 421C, Hawaii Revised Statutes, is amended by adding three new sections to be appropriately designated and to read as follows:
"§421C- Referendum.
Section 421-17 shall apply to associations formed under this chapter.
§421C- Operation as an agent on nonprofit basis.
(a) A cooperative may operate as an agent
to sell the products of its members or nonmember patrons on a nonprofit basis by
contracting to pay the members or nonmember patrons the resale price for products
sold by them to or through the cooperative, less a uniform charge to cover the expenses
involved in the handling of these products; provided that:
(1) The
resale price shall be the actual resale price or a price based upon
the average price during any period for products of the same type and quantity;
and
(2) The uniform charge
for expenses shall be:
(A) Specified
in the contract;
(B) Made
otherwise ascertainable; or
(C) Left
for determination by the directors.
(b) A cooperative that desires to purchase goods or
obtain or perform services under this chapter may operate on a nonprofit basis in
a manner similar to that described in this section.
§421C- General cooperative status. An association formed under this chapter may convert to a cooperative association or remain a consumer cooperative."
SECTION 3. Section 421-1, Hawaii Revised Statutes, is amended by amending the definition of "person" to read as follows:
SECTION 4. Section 421-2, Hawaii Revised Statutes, is amended to read as follows:
"§421-2 Purposes. An association may be organized for the purpose of engaging in any cooperative activity for producers of agricultural products in connection with:
(1) Producing, assembling, marketing, buying or selling agricultural products or harvesting, preserving, drying, processing, manufacturing, blending, canning, packing, ginning, grading, storing, warehousing, handling, shipping, or utilizing the products, or manufacturing or marketing the byproducts, thereof; provided seventy-five per cent of such agricultural products shall be of Hawaiian origin;
(2) Manufacturing, buying for or supplying to its members machinery, equipment, feed, fertilizer, fuel, seeds, and other agricultural supplies;
(3) Performing or furnishing business or educational services, on a cooperative basis, or to its members;
(4) Leasing land to
its members; and
[(4)] (5) Financing any of the above enumerated
activities for its members."
SECTION 5. Section 421-17, Hawaii Revised Statutes, is amended to read as follows:
"§421-17 Referendum. The articles or bylaws may provide that upon
demand of two-fifths of all the directors, or by the affirmative vote of two-thirds
of the members voting thereon at any regular meeting or at a special meeting called
for that purpose, any matter of policy that has been approved or passed by
the board must be referred to the members for their approval before it becomes
effective. [No referendum shall be
allowed unless it is demanded by the required number of directors at the
meeting at which the matter of policy in question is adopted.]"
SECTION 6. Section 421C-36, Hawaii Revised Statutes, is amended to read as follows:
"§421C-36 [Exemption of voting
stock] Cooperative interests issued to members exempt from registration.
Membership stock or membership
certificates [under section 421C-3(a), or share or membership capital of any
association organized under or existing prior to passage of this chapter shall
be included as exempt securities under] issued by a cooperative or patronage
equity in any form and preferred stock or equity or notes issued to members of any
cooperative organized under this chapter shall be included as exempt securities
pursuant to section [485A-201.] 485A-201(8)."
SECTION 8. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 9. This Act shall take effect upon its approval.
Report Title:
Agricultural Cooperative Associations; Consumer Cooperative Associations
Description:
Updates the laws on agricultural cooperative associations and consumer cooperative associations including operations as resale agents and conversions. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
