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LC 3280

Generally revise coop laws

2025 Regular Session

LC 3280 aimed to modernize and consolidate cooperative laws affecting members, boards, and lenders; the draft died in process, so no changes were enacted.

(LC) Draft Died in Process
#corporations/partnerships/associations
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Bill Summary · LC 3280

LC 3280: Generally revise coop laws

Overview

LC 3280 is a draft bill titled “Generally revise coop laws,” categorized under Corporations/Partnerships/Associations. The bill appears to aim at updating and consolidating the legal framework governing cooperatives. As of the latest actions, the draft did not progress toward enactment and is noted as having died in process.

Purpose and Intent

  • The stated goal implied by the title is to overhaul and modernize existing cooperative statutes.
  • Specific objectives, such as improvements to governance, member rights, financial framework, or regulatory compliance, are not provided in the available summary. The actual text would be needed to confirm precise aims and intended reforms.

Key Provisions (Likely Topics)

Because the full bill text is not provided, here are common areas typically addressed in comprehensive reforms of cooperative laws. These reflect what a general revision might cover and are not stated provisions of LC 3280 itself:
- Governance and Membership
- Rules for member eligibility, meetings, voting, and representation on boards.
- Fiduciary duties of directors and officers; transparency and accountability requirements.
- Capital, Financing, and Patronage
- Rules governing member contributions, share structure, equity, and distribution of surplus or patronage refunds.
- Access to financing, handling of loans, liens, and other capital mechanisms specific to cooperatives.
- Operations and Management
- Standards for governance documents (bylaws, articles of incorporation), and required disclosures.
- Provisions for mergers, consolidations, conversions, or reorganizations.
- Dissolution and Reorganization
- Procedures for voluntary or involuntary dissolution, wind-down processes, and asset disposition.
- Compliance and Regulation
- Relationship to state regulatory bodies, reporting requirements, and penalties for non-compliance.
- Tax and Financial Reporting
- Any cooperative-specific tax treatment considerations or reporting standards.

Note: The exact provisions of LC 3280 would come from the bill’s text. The items above are representative topics typically involved in broad “cooperative laws” revisions.

Affected Parties

  • Cooperative organizations (consumer, worker, agricultural, credit unions, or other cooperative entities)
  • Members and patrons of cooperatives
  • Cooperative boards, managers, and officers
  • Lenders and financial institutions with exposure to cooperatives
  • State or regulatory agencies overseeing corporate and cooperative governance

Procedural and Timeline Details

  • Introduction: December 14, 2024
  • Draft On Hold: December 19, 2024
  • Draft Died in Process: May 27, 2025
  • Status: Draft died in process; no enactment or further actions are anticipated unless reintroduced in a future session.

Current Status and Implications

  • The bill did not advance to committee passage or floor action and is considered dead in process. There is no indication of an active substitute or companion measure in the provided record.
  • Absent renewed sponsorship or reintroduction, the cooperative-law revision envisioned by LC 3280 is unlikely to become law in its current form.

Bottom Line

LC 3280 sought a broad update of cooperative laws. With the draft having died in process, readers should monitor for any reintroduction or new bills that address similar topics, should policymakers decide to pursue a revision of coop statutes in a future session.

Compiled from official sources — confirm details with the bill’s official record.

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