Minnesota Session Laws - 2002, Regular Session

                            CHAPTER 340-S.F.No. 3238 
                  An act relating to nonprofit corporations; 
                  neighborhood organizations; providing options 
                  regarding the election of directors, voting rights, 
                  and meeting notice requirements; amending Minnesota 
                  Statutes 2000, sections 317A.435, by adding a 
                  subdivision; 317A.439, by adding a subdivision; 
                  317A.441. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2000, section 317A.435, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [NEIGHBORHOOD ORGANIZATIONS.] (a) A neighborhood 
        organization must hold an annual meeting at which there must be 
        an election of successors to directors whose terms expire at the 
        annual meeting.  Notwithstanding subdivisions 1 and 2, notice of 
        a meeting to elect directors and any other meeting at which 
        articles or bylaws are proposed to be amended must be given as 
        specified by this subdivision.  The articles or bylaws of a 
        neighborhood organization may provide for electing directors by 
        petition, if notice of the petition process is given as provided 
        by this subdivision.  
           (b) At least ten but not more than 30 days before a meeting 
        of the members of the neighborhood organization is to be held, 
        notice of the date, time, and place of the meeting or the date 
        and process applicable to petitions and any other information 
        required by this chapter must be given in a manner designed to 
        notify all members with voting rights to the extent practical. 
           (c) For purposes of this subdivision, "neighborhood 
        organization" means a nonprofit corporation under this chapter 
        that represents a defined geographic area and has been accepted 
        by a political subdivision as the basic planning unit for the 
        area.  "Neighborhood organization" does not include a unit 
        owners' association under chapter 515B or a planned unit 
        development or homeowners' association that consists exclusively 
        of property owners within a defined geographic area. 
           (d) A neighborhood organization may choose to be governed 
        by this subdivision by so providing in its articles or bylaws. 
           Sec. 2.  Minnesota Statutes 2000, section 317A.439, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [NEIGHBORHOOD ORGANIZATIONS.] A neighborhood 
        organization as defined in section 317A.435, subdivision 4, is 
        not required to prepare a membership list under this section, if 
        it has chosen to be governed by this subdivision by so providing 
        in its articles or bylaws. 
           Sec. 3.  Minnesota Statutes 2000, section 317A.441, is 
        amended to read: 
           317A.441 [RIGHT TO VOTE.] 
           (a) Unless the articles or bylaws provide otherwise, each 
        member with voting rights is entitled to one vote on each matter 
        voted on by the members.  If a membership stands of record in 
        the names of two or more persons, their acts with respect to 
        voting have the following effect: 
           (1) if only one votes, the act binds all; and 
           (2) if more than one votes, the vote must be divided on a 
        pro rata basis. 
           (b) In the case of a neighborhood organization, members 
        with voting rights are, at a minimum, individuals who are on a 
        preexisting membership list or who, at a meeting of the 
        neighborhood organization, can produce: 
           (1) a Minnesota driver's license, Minnesota identification 
        card, or some form of residency verification that indicates the 
        individual resides within the geographic boundaries of the 
        neighborhood organization; or 
           (2) proof of ownership or lease of a business or property 
        or proof of being employed by a nonprofit organization, 
        business, or government entity located within the geographic 
        boundaries of the neighborhood, if such members are authorized 
        by the bylaws of the neighborhood organization.  
           (c) An individual who resides within the geographic 
        boundaries of a neighborhood organization or meets membership 
        criteria under paragraph (b), clause (2), but lacks the 
        documentation required by paragraph (b), clause (1), may vote at 
        a meeting of the neighborhood organization if a member who has 
        the required documentation vouches for the individual. 
           (d) A neighborhood organization through its articles or 
        bylaws may permit voting at its meetings by individuals in 
        addition to those described in paragraph (b) or (c). 
           (e) For purposes of this section, "neighborhood 
        organization" has the meaning given in section 317A.435, 
        subdivision 4.  A neighborhood organization may choose to be 
        governed by paragraphs (b), (c), and (d) by so providing in its 
        articles or bylaws. 
           Presented to the governor April 12, 2002 
           Signed by the governor April 16, 2002, 11:58 a.m.