The proposed bill establishes the Decentralized Unincorporated Nonprofit Association Act, which introduces a new subchapter to the Arkansas Code Title 4, Chapter 28. This act defines decentralized unincorporated nonprofit associations as organizations with a minimum of 100 members formed for a common nonprofit purpose, distinct from other statutes. It outlines essential definitions and establishes these associations as legal entities with perpetual existence, allowing them to engage in profit-making activities as long as the profits are used to further their nonprofit objectives. The bill also details governance structures, member participation, and protections against personal liability for members and administrators.

Additionally, the bill includes provisions for the operational framework of these associations, such as the appointment and resignation of agents, the handling of legal claims, and the use of distributed ledger technology for governance. It specifies the rights and duties of members, including reimbursement for expenses and indemnification against liabilities. The legislation also addresses the processes for dissolution, winding up, and merging with other organizations, as well as the conversion of these associations into other entity types. The effective date for the new provisions is set for January 1, 2026, aiming to modernize the legal framework governing decentralized unincorporated nonprofit associations in Arkansas.