A bill for an act
relating to cooperatives; providing for the organization and operation of housing
cooperatives for seniors, low and moderate income people, limited equity
cooperatives and leasing cooperatives for designated members; proposing coding
for new law as Minnesota Statutes, chapter 308C.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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This chapter may be cited as the "Minnesota Cooperative Housing Act."
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Cooperatives formed under this chapter and
cooperatives that were formed under chapter 308A or 308B or governed by chapter 515B
that convert and become exclusively governed by this chapter shall be known as housing
cooperatives and such cooperatives are not subject to or governed by the Minnesota Common
Interest Ownership Act, sections 515B.1-101 to 515B.4-118.
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Membership interests in cooperatives governed by
this chapter are granted homestead exemptions to the same extent as any other dwelling or
house would be entitled to that exemption.
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Membership interests are exempt from
registration to the same extent as the securities offered by any cooperative under chapter
308A or 308B are exempt from registration under chapter 80A.
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The definitions in this section apply to this chapter.
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"Address" means the mailing address, including a zip code. In the
case of a registered address, the term means mailing address and the actual office location,
which may not be a post office box.
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"Alternative ballot" means a method of voting on a candidate
or issue prescribed by the board of directors in advance of the vote and may include voting
by electronic, telephonic, Internet, or other means that reasonably allow members the
opportunity to vote.
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"Articles of Organization" of a cooperative as originally filed and
subsequently amended.
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"Association" means an organization conducting business on a
cooperative plan under the laws of this state [or another state] that is chartered to conduct
business under other laws of this state.
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"Board of directors" or "board" means the board of directors
of a cooperative.
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"Business entity" means a company, limited liability company,
limited liability partnership, or other legal entity, whether domestic or foreign, association,
or body vested with the power or function of a legal entity.
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"Chapter" means sections 308C.001 to 308C.975.
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"Cooperative" means a cooperative organized under this chapter
providing housing opportunities on a cooperative plan as provided under this chapter.
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"Common elements" means all portions of the cooperative
other than a dwelling unit or a manufactured home.
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"Common expenses" means expenditures made or
liabilities incurred by or on behalf of the cooperative together with any allocations to reserves.
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"Common expense liability" means the liability
for common expenses allocated to each dwelling unit which shall be allocated by a method
provided for in the bylaws pursuant to section 308C.241, subdivision 2, paragraph (a), clause
7.
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"Developer" means a real estate developer in the business of
building dwelling units that will be owned and operated by a cooperative organized under
this chapter.
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"Domestic business entity" means a business entity
organized under the laws of this state.
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"Domestic cooperative" means a cooperative organized
under this chapter, chapter 308A, or chapter 308B.
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"Dwelling unit" means a residential housing unit consisting
of a group of rooms and hallways which are designated or intended for use as living quarters