4064                                                       VETOES

House Bill No. 1619

AN ACT concerning

Consumer Cooperatives

FOR the purpose of eliminating a certain procedure for
terminating a nonstock voting membership in a consumer
cooperative; deleting an incorrect reference; permitting all
housing cooperatives to use a certain word in conducting
business; and generally relating to consumer cooperatives.

BY repealing and reenacting, without amendments,

Article - Corporations and Associations

Section 5-5A-02(c)

Annotated Code of Maryland

(1985 Replacement Volume and (1985 Supplement)

BY repealing and reenacting, with amendments,

Article - Corporations and Associations

Section 5-5A-08(f) and 5-5A-10

Annotated Code of Maryland

(1985 Replacement Volume and 1985 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Corporations and Associations

5-5A-02.

(c) "Cooperative basis" as applied to any entity or
corporation referred to in this subtitle means:

(1) Except as otherwise provided in the case of
federated cooperative in Section 5-5A-20 of this subtitle, that
each member has only 1 vote and that proxy voting is prohibited;

(2) That the annual return on stock or membership
capital does not exceed the allowable amount specified in the
articles of incorporation or bylaws of the cooperative;

(3) That the next savings of the entity must be
distributed in accordance with Section 5-5A-22 of this subtitle;

(4) That membership in the entity must be available
on a voluntary basis and be open to all persons who can make use
of its services and are willing to accept the responsibilities of
membership; and