3480

LAWS OF MARYLAND

Ch. 739

SUBTITLE 5A. MARYLAND CONSUMER COOPERATIVE ACT
5-5A-01.

THIS SUBTITLE DOES NOT APPLY TO ANY COOPERATIVE EXISTING OR
ORGANIZED UNDER SUBTITLE 5, (AGRICULTURAL COOPERATIVES) OF THIS
TITLE.

5-5A-02.

(A)  IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(B)  (1) "CONSUMER COOPERATIVE" OR "COOPERATIVE" MEANS A
CORPORATION CONVERTED OR ORGANIZED UNDER THIS SUBTITLE, WHICH
OPERATES OR INTENDS TO OPERATE ON A COOPERATIVE BASIS FOR THE
MUTUAL BENEFIT OF ITS MEMBERS, SUBSCRIBERS, AND PATRONS AND
CONFORMS TO THIS SUBTITLE.

(2) "CONSUMER COOPERATIVE" DOES NOT INCLUDE CREDIT
UNIONS.

(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 A
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 NET 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

(5)  THAT THE ENTITY IS ENGAGED IN PROVIDING GOODS OR
SERVICES FOR THE PRIMARY AND MUTUAL BENEFIT OF THE MEMBERSHIP.

(D)  "FEDERATED COOPERATIVE" MEANS A COOPERATIVE WHICH IS
PRIMARILY OWNED AND CONTROLLED BY, AND PROVIDES GOODS OR SERVICES
TO ENTITIES OPERATING ON A COOPERATIVE BASIS.

(E)  "FOREIGN COOPERATIVE" MEANS AN ENTITY OPERATING ON A
COOPERATIVE BASIS WHICH IS ORGANIZED OR INCORPORATED UNDER THE
LAWS OF A STATE OTHER THAN MARYLAND.

(F)  "MEMBER" MEANS A PERSON OR HOUSEHOLD WHO HAS BEEN
QUALIFIED AND ACCEPTED FOR MEMBERSHIP IN A COOPERATIVE ACCORDING
TO ITS BYLAWS.