Connecticut 2019 Regular Session Status: Enacted Bipartisan · 2 D · 1 R cosponsors

SB 138 — AN ACT MODERNIZING THE STATE'S COOPERATIVE ASSOCIATION STATUTES.

Last action — SIGNED BY GOVERNOR

Track this bill free

No card. One bill, free forever — alerts when it moves.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 18, 2019. Enacted.

Prognosis

Likely to advance 78% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 11 sponsors

    11 primary, 0 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (2 D · 1 R) — cross-party backing.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

141 added · 26 removed

141 line(s) added, 26 removed.

→
Previous
Latest
General Assembly Proposed Bill No.
General Assembly Committee Bill No.
1650 Referred to Committee on JUDICIARY Introduced by:
6309 Referred to Committee on JUDICIARY Introduced by:
(JUD) AN ACT MODERNIZING THE STATE'S COOPERATIVE ASSOCIATION STATUTES.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
Section 1.
Section 33-183 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2019):
[Seven] Three or more persons of lawful age [,] and inhabitants of this state, may, by written articles of [agreement] association, associate themselves together for the purposes of trade or for carrying on any lawful mercantile, mechanical, manufacturing or agricultural business within this state, and, when such articles of association have been executed and filed in the office of the Secretary of the State, the franchise tax provided by section 33-187, as amended by this act, paid to, and such articles of association approved by, said secretary, such persons shall become a corporation and enjoy all the powers and privileges and be subject to all the duties, restrictions and liabilities of other corporations, except so far as [the same] such duties, restrictions and liabilities may be limited or enlarged by this chapter.
Sec.
2.
Section 33-184 of the general statutes is repealed and the LCO No.
6309 1 of 5 Committee Bill No.138 following is substituted in lieu thereof (Effective October 1, 2019):
The objects for which such association is established, and the place within which its business is to be carried on, shall be distinctly set forth in its articles of [agreement] association, and it shall not do business in any other place or places than those mentioned in its articles.
Sec.
3.
Section 33-185 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):
[The] (a) Prior to September 30, 2019, the business of the association shall be managed by not fewer than seven members, who shall be styled a board of managers, shall be chosen annually by the stockholders and shall hold their offices until others are chosen and have qualified in their stead, except that when the bylaws of such association so prescribe, the board of managers may be divided into not more than three classes, each class to hold office for not more than three years, one of which classes shall be elected annually.
Such association shall have such other officers appointed as its bylaws prescribe.
The terms of the members of the board serving on the effective date of this act shall expire on September 30, 2019.
(b) On and after October 1, 2019, the business of the association shall be managed by a board of directors consisting of not fewer than three members of the association.
The board of directors shall be elected annually by the member shareholders and shall hold office until a successor has been elected, except, when the bylaws of such association so prescribe, the board of directors may be divided into not more than three classes, one of which classes shall be elected annually, with each class to hold office for not more than six years.
Such association may adopt bylaws concerning the appointment of other officers of the association and to implement the provisions of this section.
Sec.
4.
Section 33-187 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2019):
LCO No.
6309 2 of 5 Committee Bill No.138 The amount of capital stock of any cooperative association organized under the provisions of this chapter shall be fixed by its articles of association at a sum not exceeding [five] fifty million dollars par value, and shall be subject to the same franchise tax as the capital stock of other corporations organized under the general [law] laws, which tax shall be paid to the Secretary of the State.
The association may increase or diminish the amount and number of shares of such stock at any meeting of the [stockholders] member shareholders specially called for such purpose, but no shares shall be issued at less than their par value.
[Within] Not later than five days after the passage of any vote increasing or diminishing such stock, such association shall cause a certificate setting forth such vote, signed by a majority of the board of [managers] directors, to be recorded in the office of the Secretary of the State.
Sec.
5.
Section 33-188 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2019):
Not later than thirty days after the first meeting of the association, the board of [managers] directors shall prepare a report, setting forth the name of the association, the principal office of the association, the names of the respective business and residence addresses of the board of [managers] directors and officers of the association, the amount of capital stock, the par value of the shares, and the number of shares issued, together with a statement that such shares are fully paid or, if not fully paid, a statement of the amount payable in respect thereof, which report shall be filed and recorded in the office of the Secretary of the State.
On or before the tenth day of March [in each year] annually thereafter, the board of [managers] directors shall prepare a [like] report of the [same] facts as they existed on the first day of [such] March and [the same] such report shall be filed and recorded in the office of the Secretary of the State.
[All the statements] Any statement provided for in this section shall be signed and sworn to by a majority of the board of [managers] directors.
LCO No.
6309 3 of 5 Committee Bill No.138 Sec.
6.
Section 33-191 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2019):
No certificate of shares shall be issued to any person until the full amount thereof has been paid in cash, and no shareholder shall receive less than the par value of any share when disposing of the same to the board of [managers] directors.
No person shall be allowed to become a shareholder in such association except by the consent of the [managers] shareholders.
Show all 81 changed rows (41 more)
Previous
Latest
Sec.
7.
Section 33-192 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2019):
[If the board of managers fails to make any return required by this chapter or makes an untrue return, the members thereof shall be jointly and severally liable for all debts existing at the date of such return or at the time when the return should have been made, and such association shall forfeit to the state fifty dollars for each failure.] If the association fails to file the annual report required by section 33-188, as amended by this act, or makes an untrue report, the association shall pay to the Secretary of the State fifty dollars for each such failure.
Sec.
8.
Section 33-193 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2019):
There shall be [such] a distribution of the profits or [earnings] surplus of [such] an association among the member shareholders as is prescribed by the association's bylaws.
[;
provided no distribution shall be declared or paid until a sum equal to ten per cent of the net profits is appropriated for a contingent or sinking fund and until there has been thereby accumulated a sum equal to twenty per cent of the capital stock.] The board of directors of an association may declare a sum of not more than forty per cent of the net profits or surplus to be appropriated for a contingent or sinking fund, an unallocated reserve fund or a collective account as may be prescribed in the association's bylaws.
LCO No.
6309 4 of 5 Committee Bill No.
138 This act shall take effect as follows and shall amend the following sections:
Section 1 October 1, 2019 33-183 Sec.
2 October 1, 2019 33-184 Sec.
3 from passage 33-185 Sec.
4 October 1, 2019 33-187 Sec.
5 October 1, 2019 33-188 Sec.
6 October 1, 2019 33-191 Sec.
7 October 1, 2019 33-192 Sec.
8 October 1, 2019 33-193 Statement of Purpose:
To revise state statutes governing the formation of cooperative associations in order to enhance the use of such associations as a business model in the state.
[Proposed deletions are enclosed in brackets.
Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] Co-Sponsors:
OSTEN, 19th Dist.
OSTEN, 19th Dist.;
REP.
JOHNSON, 49th Dist.
HADDAD, 54th Dist.
ORANGE, 48th Dist.;
ORANGE, 48th Dist.
JOHNSON, 49th Dist.
HADDAD, 54th Dist.;
REP.
AN ACT MODERNIZING THE STATE'S COOPERATIVE ASSOCIATION STATUTES.
S.B.
Be it enacted by the Senate and House of Representatives in General Assembly convened:
138 LCO No.
That:
6309 5 of 5
(1) Section 33-183 of the general statutes be amended to reduce the minimum number of incorporators from seven to three, (2) section 33-185 of the general statutes be amended to provide that board of managers shall be elected by the holders of member shares and the term of office of such managers may extend beyond three years, (3) section 33-187 of the general statutes be amended to (A) allow the maximum value of capital stock to be increased to reflect the rate of inflation and facilitate the incorporation of cooperative associations and enterprises of scale, and (B) clarify that member shares shall have a par value that is in keeping with cooperative law and practice, (4) section 33-192 of the general statutes be amended to clarify annual reporting requirements and to remove an individual member's liability for all debts existing on the date of such report, and (5) section 33-193 of the general statutes be amended to provide the board of managers with greater flexibility in allocating profits or surplus to a contingency, LCO No.
1650 1 of 2 Proposed Bill No.
138 sinking or unallocated reserve fund or collective account.
Statement of Purpose:
To update state statutes concerning food cooperative associations and provide for the expansion of such associations as a resource.
LCO No.
1650 2 of 2
⬇ Download PDF
View plain text versions (3)

Action History

  1. SIGNED BY GOVERNOR

  2. TRANSMITTED BY SECRETARY OF THE STATE TO GOVERNOR

  3. TRANSMITTED TO SECRETARY OF THE STATE

  4. PUBLIC ACT 19-65

  5. IN CONCURRENCE

  6. HOUSE PASSED

  7. HOUSE CALENDAR NUMBER 641

  8. FAV. RPT., TABLED FOR HOUSE CALENDER

  9. ON CONSENT CALENDAR

  10. SENATE PASSED

  11. FILE NO. 854

  12. SENATE CALENDAR NUMBER 450

  13. FAV. RPT., TAB. FOR CAL., SEN.

  14. RPTD. OUT OF LCO

  15. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 04/29/19

  16. FILED WITH LCO

  17. Joint Favorable Substitute

  18. PUBLIC HEARING 0403

  19. REF. TO JOINT COMM. ON Judiciary

  20. DRAFTED BY COMMITTEE

  21. Vote to Draft

  22. REF. TO JOINT COMM. ON Judiciary

Sponsors

  • Rosa C. Rebimbas · Primary
  • Christine Conley · Primary
  • Susan M. Johnson · Primary
  • William A. Petit · Primary
  • Patrick S. Boyd · Primary
  • George S. Logan · Primary
  • Gregory Haddad · Primary
  • Joseph C. Serra · Primary
  • Mae Flexer · Primary
  • Eric C. Berthel · Primary
  • Catherine A. Osten · Primary

Sponsorship breakdown

Export CSV (upgrade) →

11 sponsors · 0 co-sponsors · 176 not signed on

Sponsors (11)

  • Rebimbas, Rosa C.
  • Conley, Christine
  • Johnson, Susan M.
  • Petit, William A.
  • Boyd, Patrick S.
  • Logan, George S.
  • Haddad, Gregory
  • Serra, Joseph C.
  • Mae Flexer Democratic
  • Eric C. Berthel Republican
  • Catherine A. Osten Democratic

Co-sponsors (0)

None.

Not signed on (176)

176 members have not signed on to this bill.

Show all 176 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

labor agriculture
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors SB 138?
SB 138 is sponsored by Rebimbas, Rosa C., Conley, Christine, Johnson, Susan M., Petit, William A., Boyd, Patrick S., Logan, George S., Haddad, Gregory, Serra, Joseph C., Mae Flexer (Democratic), Eric C. Berthel (Republican), and Catherine A. Osten (Democratic).
What is the current status of SB 138?
This bill has been enacted into law. Introduced January 18, 2019. Enacted.
Where can I track SB 138?
Track SB 138 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on SB 138

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of SB 138

Last checked for changes 3 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →