Unincorporated associations: decentralized nonprofit associations.

Existing law sets forth certain requirements and other provisions applicable to unincorporated associations, including nonprofit associations, as those terms are defined. This bill would add provisions governing decentralized nonprofit associations, defined as an unincorporated association consisting of at least 100 members with a primary common purpose other than to operate a business for profit whose governance and operations are reliant, in full or in part, on a blockchain or other distributed ledger technology, as defined. Under the bill, an action against a decentralized nonprofit association may be brought in the county where it has appointed an agent for service of process. The bill would authorize a member of a decentralized nonprofit association to transfer their membership interest or rights. The bill provides that a member, administrator, or agent is not liable for a debt, obligation, or liability of the decentralized nonprofit association, including a contractual liability, unless specified conditions are met.