The "Decentralized Unincorporated Nonprofit Association Act" establishes a legal framework for the creation and operation of decentralized unincorporated nonprofit associations in New Mexico. This bill introduces new definitions and provisions that outline the roles of members and administrators, the formation process, and governance structures. Key features include the ability for these associations to hold property, a prohibition on dividends, and established rules for member admission, expulsion, and resignation. The act also permits the use of distributed ledger technology, such as smart contracts, to enhance governance and decision-making processes.

Additionally, the bill details the rights and responsibilities of administrators, the legal processes involving the associations, and conditions for member access to records. It clarifies that members are not personally liable for the association's debts and sets forth specific conditions for dissolution. The act allows associations to impose reasonable restrictions on information access, requiring nondisclosure obligations from recipients, and establishes guidelines for reimbursing members or administrators for authorized expenses. Indemnification provisions are included, protecting members or administrators from legal expenses except in cases of willful misconduct. The dissolution process is also outlined, ensuring that assets are distributed according to specific conditions without direct distributions to members or former members.