The Board Page

Co-op Applauds Passage of New Hampshire Legislation

The recent passage of New Hampshire Senate Bill 106 has the potential to bring numerous benefits to the Co-op and its members. "The impact of the changes this law can have for the Co-op is significant," says Board President Steve Maker.

Initiated by the Co-op’s Board of Directors and co-sponsored by State Senator Clifton Below (District 5, Lebanon) and State Representative Derek Owen (Merrimack), the legislation was signed into law by the governor on July 5th. But the Co-op must amend its bylaws before we can take advantage of most of the legislation.

What are the legislation’s benefits? With appropriate amendments to our bylaws, the new law permits the following:

Absentee voting. Today, members must cast their votes on site: at Co-op stores for the election of directors and at meetings of the full membership for other matters. If we adopt absentee voting, what methods would we use? How much will it cost? How do we effectively communicate the issues? While this is certainly a new and exciting opportunity for us, we also have a lot to consider.

Simple majority to amend bylaws. Currently, amendment requires a 2/3 vote. Although the law now gives us the flexibility of amending the bylaws with a simple majority, we may choose to stick with the current voting requirement.

Deferred payment of "de minimus" net savings to members and patrons. "De minimus" is defined as 10 times the cost of a first class postage stamp. So, if the patronage refund you are due is less than $3.40, the Co-op would retain it and add it to your patronage refund the next time. That’s right: no more 83 cent checks!

Abandoned membership interest to the Co-op’s reserve fund. If, after five years, a member’s net savings or dividends — in the form of a patronage refund check, for example — are unclaimed, the monies are considered "abandoned" and will be placed in the Co-op’s reserve fund. The Co-op must make a good-faith effort to contact the member, including writing to the member’s last known address and publishing a notice in the local paper.

In order to take advantage of most of this legislation, the Co-op’s bylaws need to be amended. Therefore, the next step is for the Board’s Bylaw Committee to work on specific bylaw changes so that the Board can make a proposal for a membership vote. Please watch for more information from the Board.

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