HOUSE OF REPRESENTATIVES	H.B. NO.	2404
THIRTY-THIRD LEGISLATURE, 2026		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO COOPERATIVE ASSOCIATIONS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 421C, Hawaii Revised Statutes, is amended by amending its title to read as follows:

"CHAPTER 421C

[CONSUMER] COOPERATIVE ASSOCIATIONS"

SECTION 2. Section 421C-1, Hawaii Revised Statutes, is amended as follows:

1. By amending the definitions of "association" and "consumer cooperative association" to read:

""Association" means a [consumer] cooperative association.

["Consumer cooperative] "Cooperative association" means a group enterprise, organized on a cooperative basis and incorporated under this chapter such that:

(1) Each member has one vote and only one vote, except as may be altered in the articles or bylaws of a secondary cooperative by provision for voting by member organizations;

(2) The maximum rate at which any return is paid on share or membership capital is limited; and

(3) The allocation or distribution of net savings after making provision for such separate funds as may be required or specially permitted by statute, articles, or bylaws, is made to member patrons or to all patrons, in proportion to their patronage; or is allocated in a manner which benefits the general welfare of all of the members of the association."

2. By amending the definition of "electric utility cooperative association" to read:

""Electric utility cooperative association" means a [consumer] cooperative association that provides electric utility service as a public utility."

SECTION 3. Section 480-11, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Nothing in this chapter shall be construed to forbid the existence and operation of fishery, agricultural, or [consumer] cooperative organizations or associations instituted for the purpose of mutual help that are organized and operated under chapter 421 or 421C, or that conform and continue to conform to the requirements of the Capper-Volstead Act (7 U.S.C. 291 and 292); provided that if any organization or association monopolizes or restrains trade or commerce in any section of this State to an extent that the price of any fishery, agricultural, or consumer product is unduly enhanced by reason thereof, this chapter shall apply to those acts."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 3000.

Report Title:

Cooperative Associations

Description:

Changes the name of entities organized under chapter 421C, Hawaii Revised Statutes, from consumer cooperative associations to cooperative associations. Effective 7/1/3000. (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.