The bill amends the Wyoming Decentralized Unincorporated Nonprofit Association Act to facilitate the automatic conversion of decentralized unincorporated nonprofit associations into unincorporated nonprofit associations under certain conditions. It clarifies definitions and references related to these associations, ensuring alignment with the Wyoming Unincorporated Nonprofit Association Act. Key changes include the insertion of new definitions and clarifications regarding the roles and liabilities of members and administrators, specifying that individuals are not liable for breaches of contract or tortious acts solely due to their membership status. The bill also introduces terms such as "distributed ledger protocol" and outlines the use of distributed ledger technology in governance processes.

Furthermore, the bill modifies the consensus mechanism and related requirements for decentralized unincorporated nonprofit associations to ensure compliance with state law. It emphasizes the decentralized nature of these associations, allowing members to select administrators and defining their rights and duties. Provisions for limiting administrator liability, the right to inspect records, and the process for indemnification and reimbursement of expenses are also included. The bill details the responsibilities of members in winding up and terminating these associations, including asset distribution, and it repeals a specific provision in W.S. 17-32-102(a)(ii). The act is set to take effect on July 1, 2026.

Statutes affected:
Introduced: 17-32-102