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 for these associations. It permits the use of distributed ledger technology, such as blockchain, to enhance governance and decision-making. The act emphasizes that these associations cannot distribute profits to members and sets forth conditions for member admission, suspension, or expulsion. Key provisions include the requirement for a written agreement among members, the prohibition of dividends, and the stipulation that property held by the association is for the benefit of its members.

Additionally, the bill outlines new provisions regarding the management and dissolution of these associations, allowing for reasonable restrictions on access to information while placing the burden of proof on the association in disputes. It grants former members or administrators access to information they were entitled to during their tenure, provided they request it in good faith. The act also details guidelines for reimbursing expenses and indemnifying members and administrators for authorized expenses, with limitations on indemnification in cases of willful misconduct. The dissolution process is clearly defined, including asset distribution and the prohibition of any direct or indirect distribution of assets to members or former members during dissolution. Overall, the act aims to provide a transparent and accountable legal structure for decentralized nonprofit organizations while leveraging modern technology.