The proposed bill establishes the Decentralized Unincorporated Nonprofit Association Act in Arkansas, creating a new subchapter in the Arkansas Code that defines decentralized unincorporated nonprofit associations as organizations with at least 100 members formed for a common nonprofit purpose. The act outlines key definitions, legal entity status, powers, and limitations on distributions to members, ensuring that profits are used to further nonprofit objectives. It also clarifies the liability of members and administrators, stating they are not personally liable for the association's debts or obligations, and allows for profit-making activities as long as they support the nonprofit mission. The bill includes provisions for appointing an agent for service of process, participation in legal proceedings, and the use of distributed ledger technology for governance.

Additionally, the bill introduces governance and operational provisions, such as the requirement for agents to sign their appointment, the ability for agents to resign, and the establishment of filing fees. It addresses reimbursement for authorized expenses, indemnification for liabilities incurred during activities, and outlines processes for dissolution, winding up, and merging with other organizations. The legislation also provides a framework for converting decentralized unincorporated nonprofit associations into other types of entities, requiring member approval and ensuring that all property and obligations are retained by the new entity. The act aims to modernize the legal framework governing these associations while ensuring clarity in member rights and operational procedures, with an effective date set for January 1, 2026.