The proposed "Decentralized Unincorporated Nonprofit Association Act" aims to legally recognize decentralized unincorporated nonprofit associations in West Virginia, establishing a comprehensive framework for their governance and operations. The bill introduces new articles (31E-17-1701 to 31E-17-1730) that define key terms such as "decentralized unincorporated nonprofit association," "member," and "digital asset." It outlines the associations' rights to hold property, engage in profit-making activities, and specifies member liabilities. The legislation also details governance processes, member rights, and the procedures for dissolution, while allowing for the use of digital governance methods, including smart contracts.

Furthermore, the bill addresses the operational structure of these associations, including member admission, suspension, and expulsion processes, and clarifies that members do not have fiduciary duties solely by virtue of their membership. It introduces provisions for mergers, ensuring that property held for charitable purposes remains dedicated to its original intent post-merger, and allows for the conversion between unincorporated and decentralized unincorporated nonprofit associations. The act is set to take effect on July 1, 2026, and aims to modernize the legal framework for decentralized nonprofit organizations, enhancing their flexibility and governance.

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