The proposed bill establishes the Decentralized Unincorporated Nonprofit Association Act in West Virginia, creating a legal framework for unincorporated nonprofit associations. It introduces a new article to the Code of West Virginia that includes definitions, governance structures, and operational guidelines for these associations. Key provisions allow these associations to hold property, engage in profit-making activities for nonprofit purposes, and provide liability protections for members and administrators. The bill also outlines the appointment process for agents for service of process, member rights, and procedures for dissolution and termination.

Additionally, the bill introduces amendments regarding governance and operational structures, including the continuation of associations post-dissolution for winding up activities, member admission and expulsion processes, and the ability for members to resign while retaining prior obligations. It allows the use of distributed ledger technology for governance, including smart contracts, and clarifies the rights and duties of administrators. The bill also details requirements for mergers of decentralized unincorporated nonprofit associations, ensuring compliance with governing laws and necessary approvals. Furthermore, it grants associations the option to elect to be governed by the new act or to cease governance under it, with the effective date set for July 1, 2026.

Statutes affected:
Introduced Version: 31E-17-1701, 31E-17-1702, 31E-17-1703, 31E-17-1704, 31E-17-1705, 31E-17-1706, 31E-17-1707, 31E-17-1708, 31E-17-1709, 31E-17-1710, 31E-17-1711, 31E-17-1712, 31E-17-1713, 31E-17-1714, 31E-17-1715, 31E-17-1716, 31E-17-1717, 31E-17-1718, 31E-17-1719, 31E-17-1720, 31E-17-1721, 31E-17-1722, 31E-17-1723, 31E-17-1724, 31E-17-1725, 31E-17-1726, 31E-17-1727, 31E-17-1728, 31E-17-1729, 31E-17-1730
Committee Substitute: 36-13-1, 36-13-2, 36-13-3, 36-13-4, 36-13-5, 36-13-6, 36-13-7, 36-13-8, 36-13-9, 36-13-10, 36-13-11, 36-13-12, 36-13-13, 36-13-14, 36-13-15, 36-13-16, 36-13-17, 36-13-18, 36-13-19, 36-13-20, 36-13-21, 36-13-22, 36-13-23, 36-13-24, 36-13-25, 36-13-26, 36-13-27, 36-13-28, 36-13-29, 36-13-30, 36-13-31
Engrossed Committee Substitute: 36-13-1, 36-13-2, 36-13-3, 36-13-4, 36-13-5, 36-13-6, 36-13-7, 36-13-8, 36-13-9, 36-13-10, 36-13-11, 36-13-12, 36-13-13, 36-13-14, 36-13-15, 36-13-16, 36-13-17, 36-13-18, 36-13-19, 36-13-20, 36-13-21, 36-13-22, 36-13-23, 36-13-24, 36-13-25, 36-13-26, 36-13-27, 36-13-28, 36-13-29, 36-13-30, 36-13-31