Code Section Group

Business and Professions Code - BPC

DIVISION 10. Cannabis [26000 - 26231.2]

  ( Heading of Division 10 amended by Stats. 2017, Ch. 27, Sec. 3. )

CHAPTER 22. Cannabis Cooperative Associations [26220 - 26231.2]

  ( Chapter 22 added by Stats. 2017, Ch. 27, Sec. 107. )

ARTICLE 9. Members [26229 - 26229.8]
  ( Article 9 added by Stats. 2017, Ch. 27, Sec. 107. )

26229.
  

Under the terms and conditions that are prescribed in the bylaws adopted by it, an association may admit as members or issue common stock only to persons engaged in the cultivation of a cannabis product that is to be handled by or through the association.

(Added by Stats. 2017, Ch. 27, Sec. 107. Effective June 27, 2017.)

26229.1.
  

If a member of a nonstock association is other than a natural person, the member may be represented by any individual, associate, officer, or manager or member of it, who is duly authorized in writing.

(Added by Stats. 2017, Ch. 27, Sec. 107. Effective June 27, 2017.)

26229.2.
  

Any association may become a member or stockholder of any other association.

(Added by Stats. 2017, Ch. 27, Sec. 107. Effective June 27, 2017.)

26229.3.
  

If a member of an association that is established without shares of stock has paid his membership fee in full, he or she shall receive a certificate of membership.

(Added by Stats. 2017, Ch. 27, Sec. 107. Effective June 27, 2017.)

26229.4.
  

An association shall not issue a certificate for stock to a member until it has been fully paid for. The promissory notes of the members may be accepted by the association as full or partial payment. The association shall hold the stock as security for the payment of the note, but the retention as security does not affect the member’s right to vote.

(Added by Stats. 2017, Ch. 27, Sec. 107. Effective June 27, 2017.)

26229.5.
  

An association, in its bylaws, may limit the amount of common stock that any member may own.

(Added by Stats. 2017, Ch. 27, Sec. 107. Effective June 27, 2017.)

26229.6.
  

The bylaws shall prohibit the transfer of the common stock or membership certificates of the associations to a person that is not qualified to be a shareholder or member as specified in this chapter. These restrictions shall be printed upon every certificate of stock or membership that is subject to them.

(Added by Stats. 2017, Ch. 27, Sec. 107. Effective June 27, 2017.)

26229.7.
  

The association may, at any time, as specified in the bylaws, except when the debts of the association exceed 50 percent of its assets, buy in or purchase its common stock at the book value of the common stock, as conclusively determined by the board of directors, and pay for it in cash within one year thereafter.

(Added by Stats. 2017, Ch. 27, Sec. 107. Effective June 27, 2017.)

26229.8.
  

A member or stockholder is not liable for the debts of the association to an amount that exceeds the sum that remains unpaid on his membership fee or his subscription to the capital stock, including any unpaid balance on any promissory note that is given in payment of the membership fee or the subscription to the capital stock.

(Added by Stats. 2017, Ch. 27, Sec. 107. Effective June 27, 2017.)

BPCBusiness and Professions Code - BPC9.