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 provided 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 described in 
  1.23  paragraph (a) is to be held, notice of the date, time, and place 
  1.24  of the meeting or the date and process applicable to petitions 
  1.25  and any other information 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)(i) published in the community newspaper having the 
  2.2   largest circulation within the geographic boundaries of the 
  2.3   neighborhood organization or in a neighborhood organization 
  2.4   newsletter that is distributed to all occupied buildings in the 
  2.5   neighborhood; or 
  2.6      (ii) provided in a written or electronic notice delivered 
  2.7   to all households within the geographic boundaries of the 
  2.8   neighborhood organization.  
  2.9      (c) For purposes of this subdivision, "neighborhood 
  2.10  organization" means a nonprofit corporation under this chapter 
  2.11  that represents a defined geographic area and has been accepted 
  2.12  by a political subdivision as the basic planning unit for the 
  2.13  area.  Neighborhood organization does not include a unit owners' 
  2.14  association under chapter 515B or a planned unit development or 
  2.15  homeowners' association that consists exclusively of property 
  2.16  owners within a defined geographic area. 
  2.17     Sec. 2.  Minnesota Statutes 2000, section 317A.437, is 
  2.18  amended by adding a subdivision to read: 
  2.19     Subd. 3.  [NEIGHBORHOOD ORGANIZATIONS.] This section does 
  2.20  not apply to a neighborhood organization, as defined in section 
  2.21  317A.435, subdivision 4. 
  2.22     Sec. 3.  Minnesota Statutes 2000, section 317A.439, is 
  2.23  amended by adding a subdivision to read: 
  2.24     Subd. 6.  [NEIGHBORHOOD ORGANIZATIONS.] A neighborhood 
  2.25  organization, as defined in section 317A.435, subdivision 4, is 
  2.26  not required to prepare a membership list under this section. 
  2.27     Sec. 4.  Minnesota Statutes 2000, section 317A.441, is 
  2.28  amended to read: 
  2.29     317A.441 [RIGHT TO VOTE.] 
  2.30     (a) Unless the articles or bylaws provide otherwise, each 
  2.31  member with voting rights is entitled to one vote on each matter 
  2.32  voted on by the members.  If a membership stands of record in 
  2.33  the names of two or more persons, their acts with respect to 
  2.34  voting have the following effect: 
  2.35     (1) if only one votes, the act binds all; and 
  2.36     (2) if more than one votes, the vote must be divided on a 
  3.1   pro rata basis. 
  3.2      (b) In the case of a neighborhood organization, as defined 
  3.3   in section 317A.435, subdivision 4, members with voting rights 
  3.4   are, at a minimum, individuals who are on a preexisting 
  3.5   membership list or who produce the following at a meeting of the 
  3.6   neighborhood organization: 
  3.7      (1) a Minnesota driver's license, Minnesota identification 
  3.8   card, or some form of residency verification that indicates the 
  3.9   individual resides within the geographic boundaries of the 
  3.10  neighborhood organization; or 
  3.11     (2) proof of ownership or lease of a business or property 
  3.12  or proof of being employed by a nonprofit organization, 
  3.13  business, or government entity located within the geographic 
  3.14  boundaries of the neighborhood, if these persons are authorized 
  3.15  to be members by the bylaws of the neighborhood organization.  
  3.16     (c) An individual who resides within the geographic 
  3.17  boundaries of a neighborhood organization or meets membership 
  3.18  criteria under paragraph (b), clause (2), but lacks the 
  3.19  documentation required by paragraph (b), clause (1), may vote at 
  3.20  a meeting of the neighborhood organization if a member who has 
  3.21  the required documentation vouches for the individual. 
  3.22     (d) The articles or bylaws of a neighborhood organization 
  3.23  may permit voting at its meetings by individuals in addition to 
  3.24  those described in paragraph (b) or (c). 
  3.25     Sec. 5.  [APPLICATION.] 
  3.26     By August 1, 2002, neighborhood organizations must amend 
  3.27  their bylaws to conform to the provisions of this act.  On and 
  3.28  after August 1, 2002, provisions of bylaws that are inconsistent 
  3.29  with this act are not effective.