HF 2638

1st Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to cooperatives; regulating the filings and 
  1.3             bylaws of cooperatives; regulating finance charges 
  1.4             imposed by agricultural cooperatives on goods and 
  1.5             services; making a technical change; amending 
  1.6             Minnesota Statutes 1994, sections 303.02, subdivision 
  1.7             2; 308A.135, subdivision 3; and 308A.165, subdivision 
  1.8             2; proposing coding for new law in Minnesota Statutes, 
  1.9             chapter 334. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1994, section 303.02, 
  1.12  subdivision 2, is amended to read: 
  1.13     Subd. 2.  [CORPORATION.] In addition to the meaning set 
  1.14  forth in section 300.02, subdivision 2, "corporation" means a 
  1.15  corporation formed for profit and includes a cooperative.  
  1.16     Sec. 2.  Minnesota Statutes 1994, section 308A.135, 
  1.17  subdivision 3, is amended to read: 
  1.18     Subd. 3.  [CERTIFICATE.] (a) A certificate must be prepared 
  1.19  stating:  
  1.20     (1) the vote and meeting of the board adopting a resolution 
  1.21  of the proposed amendment; 
  1.22     (2) the notice given to members of the meeting that at 
  1.23  which the amendment was adopted; 
  1.24     (3) the quorum registered at the meeting; and 
  1.25     (4) the vote cast adopting the amendment.  
  1.26     (b) The certificate must be signed by the chair, 
  1.27  vice-chair, president, vice-president, secretary, or assistant 
  2.1   secretary and filed with the records of the cooperative.  
  2.2      Sec. 3.  Minnesota Statutes 1994, section 308A.165, 
  2.3   subdivision 2, is amended to read: 
  2.4      Subd. 2.  [ADOPTION AND AMENDMENT.] (a) Except as provided 
  2.5   in paragraph (b), the bylaws of a cooperative may be adopted or 
  2.6   amended at a regular or special members' meeting if: 
  2.7      (1) the notice of the meeting contains a summary statement 
  2.8   of the proposed bylaws or amendment; 
  2.9      (2) a quorum is registered as being present or represented 
  2.10  by mail vote if authorized by the board; and 
  2.11     (3) the bylaws or amendment is approved by a majority of 
  2.12  the votes cast, or for a cooperative with articles or bylaws 
  2.13  requiring more than majority approval or other conditions for 
  2.14  approval, the bylaws or amendment is approved by a proportion of 
  2.15  the votes cast or a number of the total members as required by 
  2.16  the articles or bylaws and the conditions for approval in the 
  2.17  articles or bylaws have been satisfied. 
  2.18     (b) Until the first annual members' meeting, the majority 
  2.19  of directors may adopt and amend bylaws for the cooperative that 
  2.20  are consistent with subdivision 3 if the cooperative does not 
  2.21  have any members or stockholders with voting rights. 
  2.22     Sec. 4.  [334.062] [AGRICULTURAL COOPERATIVES AND FARM 
  2.23  SUPPLY.] 
  2.24     Notwithstanding sections 334.01 and 334.011, a cooperative 
  2.25  organized for agricultural purposes under chapter 308A or a 
  2.26  similar statute of another state and registered to conduct 
  2.27  business in this state, and other persons or entities engaged in 
  2.28  an agricultural retail or farm supply business, may impose, 
  2.29  charge, and collect a finance charge on goods, products, and 
  2.30  services, including sales and open and closed end credit 
  2.31  transactions that do not exceed a monthly rate of 1-1/2 percent 
  2.32  or an annual rate of 18 percent, and the delinquency and 
  2.33  collection charge authorized under section 334.171, provided, 
  2.34  however, for a cooperative, the finance, delinquency, and 
  2.35  collection charge is the same for member and nonmember patrons.