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Text: S05059                            Text: S05061
Text: S05000 - S05099                   Text: S Index
Bills and Amendments: General Index     Bill History: General Index

Senate Amendment 5060

Amendment Text

PAG LIN
  1  1    Amend Senate File 2135 as follows:
  1  2    #1.  Page 1, by striking lines 32 through 34 and
  1  3 inserting the following:
  1  4    "i.  A cooperative corporation organized under
  1  5 chapter 501, if the cooperative buys grain from
  1  6 producers who are members or a licensed grain dealer,
  1  7 and the cooperative does not resell that grain."
  1  8    #2.  Page 10, by inserting after line 35 the
  1  9 following:
  1 10    "Sec.    .  NEW SECTION.  501.305  FINANCIAL
  1 11 INFORMATION.
  1 12    The cooperative shall make available financial
  1 13 information to its membership by doing either of the
  1 14 following:
  1 15    1.  Preparing and providing to its members a
  1 16 financial statement for the cooperative's last fiscal
  1 17 year.
  1 18    a.  The financial statement must be based upon an
  1 19 unqualified opinion based upon an audit performed by a
  1 20 certified public accountant licensed in this state.
  1 21 However, a qualification in an opinion is valid, if it
  1 22 is unavoidable by any audit procedure that is
  1 23 permitted under generally accepted accounting
  1 24 principles.  An opinion that is qualified because of a
  1 25 limited audit procedure or because the scope of an
  1 26 audit is limited is invalid for purposes of this
  1 27 section.
  1 28    b.  The financial statement must disclose the
  1 29 assets, liabilities, and net worth of the cooperative.
  1 30 The financial statement must be prepared according to
  1 31 generally accepted accounting principles.  Assets must
  1 32 be shown at original cost less depreciation, or based
  1 33 upon a valuation in accordance with a competent
  1 34 appraisal.  Unpriced contracts for agricultural
  1 35 commodities or products must be shown as a liability
  1 36 and valued at the applicable current market price of
  1 37 the agricultural commodities or products as of the
  1 38 date the financial statement is prepared.
  1 39    2.  Honoring a demand to provide access at all
  1 40 reasonable hours at its offices the books, records,
  1 41 accounts, papers, documents, and computer programs or
  1 42 other recordings relating to the property, assets,
  1 43 business, and financial affairs of the cooperative.
  1 44 The demand shall be in writing and signed by at least
  1 45 fifty percent of all the members of the cooperative.
  1 46 The cooperative shall honor the demand within one day
  1 47 from its receipt.  Upon receipt of the demand, the
  1 48 cooperative must provide access to one or more persons
  1 49 selected by the fifty percent of the members to
  1 50 conduct the examination."
  2  1    #3.  Page 16, line 23, by inserting after the word
  2  2 "stock" the following:  ", other than voting stock,".
  2  3    #4.  By striking page 16, line 30, through page 17,
  2  4 line 9, and inserting the following:
  2  5    "Sec.    .  NEW SECTION.  501.502  TERMINATION OF
  2  6 MEMBERSHIP.
  2  7    1.  A membership shall terminate upon the death of
  2  8 the member.
  2  9    2.  The articles or bylaws may authorize the board
  2 10 to terminate a membership for any of the following
  2 11 reasons:
  2 12    a.  The member has attempted to transfer stock to a
  2 13 person who is not a member and has not been approved
  2 14 for membership.
  2 15    b.  The member has failed to meet the member's
  2 16 commitment to provide products to the cooperative or
  2 17 to buy the cooperative's products.
  2 18    c.  The member is no longer an authorized person.
  2 19    d.  The member is no longer a farming entity.
  2 20    3.  A member's right to vote at member meetings
  2 21 shall cease upon termination of the membership.
  2 22    4.  The cooperative shall redeem, without interest,
  2 23 the voting stock of a terminated member within one
  2 24 year after the termination of the membership for the
  2 25 fair market value of the stock.  If the amount
  2 26 originally paid by the member for the voting stock was
  2 27 less than ten percent of the total amount the member
  2 28 paid for all classes of stock, the cooperative may
  2 29 redeem the voting stock for its issue price if the
  2 30 cooperative's articles of incorporation grant the
  2 31 cooperative this authority.
  2 32    5.  The cooperative shall redeem, without interest,
  2 33 all of the terminated member's allocated patronage
  2 34 refunds and preferred stock originally issued as
  2 35 allocated patronage refunds for the issue price.  A
  2 36 cooperative shall make this payment within one year
  2 37 after the termination of the membership.  However, if
  2 38 a terminated member's current equity equals or exceeds
  2 39 two percent of the cooperative's total members'
  2 40 equity, the cooperative shall redeem the terminated
  2 41 member's equity in annual amounts of not less than
  2 42 fifteen percent of the total amount provided that the
  2 43 entire amount must be redeemed within seven years."
  2 44    #5.  By renumbering as necessary.  
  2 45 
  2 46 
  2 47                              
  2 48 BERL E. PRIEBE
  2 49 
  2 50 
  3  1                              
  3  2 DERRYL McLAREN
  3  3 SF 2135.504 76
  3  4 da/jw
     

Text: S05059                            Text: S05061
Text: S05000 - S05099                   Text: S Index
Bills and Amendments: General Index     Bill History: General Index

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