1.1                          A bill for an act 
  1.2             relating to nonprofit corporations; regulating 
  1.3             neighborhood organizations; providing for the election 
  1.4             of directors, and specifying voting rights and meeting 
  1.5             notice requirements; amending Minnesota Statutes 2000, 
  1.6             sections 317A.435, by adding a subdivision; 317A.437, 
  1.7             by adding a subdivision; 317A.439, by adding a 
  1.8             subdivision; 317A.441. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2000, section 317A.435, is 
  1.11  amended by adding a subdivision to read: 
  1.12     Subd. 4.  [NEIGHBORHOOD ORGANIZATIONS.] (a) A neighborhood 
  1.13  organization must elect directors annually.  Notwithstanding the 
  1.14  provisions of subdivisions 1 and 2, notice of a meeting to elect 
  1.15  directors and any other meeting at which articles or bylaws are 
  1.16  proposed to be amended must be given as specified by this 
  1.17  subdivision.  The articles or bylaws of a neighborhood 
  1.18  organization may provide for electing directors by petition, if 
  1.19  notice of the petition process is given as provided by this 
  1.20  subdivision.  
  1.21     (b) At least ten but not more than 30 days before a meeting 
  1.22  of the members of the neighborhood organization is to be held, 
  1.23  notice of the date, time, and place of the meeting or the date 
  1.24  and process applicable to petitions and any other information 
  1.25  required by this chapter must be: 
  1.26     (1) posted at public buildings located within the 
  1.27  geographic boundaries of the neighborhood organization; and 
  2.1      (2) published in the community newspaper having the largest 
  2.2   circulation within the geographic boundaries of the neighborhood 
  2.3   organization or in a neighborhood organization newsletter that 
  2.4   is distributed to all occupied buildings in the neighborhood; or 
  2.5      (3) provided in a written notice delivered to all 
  2.6   households within the geographic boundaries of the neighborhood 
  2.7   organization.  
  2.8      (c) For purposes of this subdivision, "neighborhood 
  2.9   organization" means a nonprofit corporation under this chapter 
  2.10  that represents a defined geographic area and has been accepted 
  2.11  by a political subdivision as the basic planning unit for the 
  2.12  area. 
  2.13     Sec. 2.  Minnesota Statutes 2000, section 317A.437, is 
  2.14  amended by adding a subdivision to read: 
  2.15     Subd. 3.  [NEIGHBORHOOD ORGANIZATIONS.] The provisions of 
  2.16  this section do not apply to a neighborhood organization as 
  2.17  defined in section 317A.435, subdivision 4. 
  2.18     Sec. 3.  Minnesota Statutes 2000, section 317A.439, is 
  2.19  amended by adding a subdivision to read: 
  2.20     Subd. 6.  [NEIGHBORHOOD ORGANIZATIONS.] A neighborhood 
  2.21  organization as defined in section 317A.435, subdivision 4, is 
  2.22  not required to prepare a membership list under this section. 
  2.23     Sec. 4.  Minnesota Statutes 2000, section 317A.441, is 
  2.24  amended to read: 
  2.25     317A.441 [RIGHT TO VOTE.] 
  2.26     (a) Unless the articles or bylaws provide otherwise, each 
  2.27  member with voting rights is entitled to one vote on each matter 
  2.28  voted on by the members.  If a membership stands of record in 
  2.29  the names of two or more persons, their acts with respect to 
  2.30  voting have the following effect: 
  2.31     (1) if only one votes, the act binds all; and 
  2.32     (2) if more than one votes, the vote must be divided on a 
  2.33  pro rata basis. 
  2.34     (b) In the case of a neighborhood organization, members 
  2.35  with voting rights are, at a minimum, individuals who, at a 
  2.36  meeting of the neighborhood organization, can produce: 
  3.1      (1) a Minnesota driver's license, Minnesota identification 
  3.2   card, or some form of residency verification that indicates the 
  3.3   individual resides within the geographic boundaries of the 
  3.4   neighborhood organization; or 
  3.5      (2) proof of ownership or lease of a business or property 
  3.6   or proof of being employed by a nonprofit organization, 
  3.7   business, or government entity located within the geographic 
  3.8   boundaries of the neighborhood, if such members are authorized 
  3.9   by the bylaws of the neighborhood organization.  
  3.10     (c) An individual who resides within the geographic 
  3.11  boundaries of a neighborhood organization or meets membership 
  3.12  criteria under paragraph (b), clause (2), but lacks the 
  3.13  documentation required by paragraph (b), clause (1), may vote at 
  3.14  a meeting of the neighborhood organization if a member who has 
  3.15  the required documentation vouches for the individual. 
  3.16     (d) A neighborhood organization through its articles or 
  3.17  bylaws may permit voting at its meetings by individuals in 
  3.18  addition to those described in paragraph (b) or (c). 
  3.19     (e) For purposes of this section, "neighborhood 
  3.20  organization" means a nonprofit corporation under this chapter 
  3.21  that represents a defined geographic area and has been accepted 
  3.22  by a political subdivision as the basic planning unit for the 
  3.23  area. 
  3.24     Sec. 5.  [APPLICATION.] 
  3.25     By August 1, 2002, neighborhood organizations must amend 
  3.26  their bylaws to conform to the provisions of this act.