ATTACHMENT B

AN ACT CONCERNING THE UNIFORM UNINCORPORATED NONPROFIT ASSOCIATION ACT.

    Be it enacted by the Senate and the House of Representatives in General Assembly convened:

    Section 1. (NEW) This Act may be cited as the Uniform Unincorporated Nonprofit Association Act.

    Sec. 2. (NEW) In this Act:

    (1) "Member" means a person who, under the rules or practices of a nonprofit association, may participate in

the selection of persons authorized to manage the affairs of the association or in the development of the

nonprofit association.

    (2) "Nonprofit association" means an unincorporated organization, other than one created by a trust, or

voluntary association consisting of two or more members joined by mutual consent for a common, lawful,

nonprofit purpose, but not including religious corporations or societies as defined in section 33-264. Holding an

estate or interest in real or personal property in joint tenancy, tenancy in common or tenancy by the entireties

does not by itself establish a nonprofit association, even if the co-owners share use of the property for a

nonprofit purpose.

    3) "Person" means an individual, corporation, business trust, estate, trust, partnership, nonprofit association,

joint venture, government, governmental subdivision, agency or instrumentality or any other legal or commercial

entity.

    (4) "State" means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico or

any territory or insular possession subject to the jurisdiction of the United States.

    Sec. 3. (NEW) Principles of law and equity supplement this Act unless displaced by a particular provision of it.

    Sec. 4. (NEW) A nonprofit association may acquire, hold, encumber and transfer an estate or interest in real

and personal property in this state, whether or not the nonprofit association or a member has any other

relationship to this state.

    Sec. 5. (NEW) (a) A nonprofit association is a legal entity separate from its members for the purposes of

acquiring, holding encumbering and transferring an estate or interest in real and personal property.

    (b) A nonprofit association in its name may acquire, hold, encumber or transfer an estate or interest in real or

personal property.

    (c) A nonprofit association may be a beneficiary of a trust or contract, a legatee or a devisee.

    Sec. 6. (NEW) (a) A nonprofit association may execute and record a statement of authority to transfer an estate

or interest in real property in the name of the nonprofit association.

    (b) An estate or interest in real property in the name of a nonprofit association may be transferred by a person

so authorized in a statement of authority recorded in the land records of the town in which a transfer of the

property would be recorded.

    (c) A statement of authority must set forth: (1) The name of the nonprofit association; (2) the federal tax

identification number, if any, of the nonprofit association; (3) the address in this state, including the street

address, if any of the nonprofit association, or, if the nonprofit association does not have an address in this

state, its address out of state; (4) that it is a nonprofit association; (5) the name or title of a person authorized to

transfer an estate or interest in real property held in the name of the nonprofit association.; and (6) the action,

procedure, or vote of the nonprofit association which authorizes the person to transfer the real property of the

nonprofit association and which authorizes the person to execute the statement of authority.

    (d) A statement of authority must be subscribed and sworn to by a person who is not the person authorized to

transfer the estate or interest.

    (e) The town clerk shall index the statement of authority in the grantor index in the name of the nonprofit

association.

    (f) An amendment, including a cancellation, of a statement of authority must meet the requirements for

execution and recording of an original statement. Unless canceled earlier, a recorded statement of authority or its

most recent amendment is canceled by operation of law five years after the date of the most recent recording.

    (g) If the record title to real property is in the name of a nonprofit association and the statement of authority is

recorded in the land records of the town in which a transfer of real property would be recorded, the authority of

the person named in the statement of authority is conclusive in favor of a person who gives value without notice

that the person named in the statement lacks authority.

    (h) An otherwise valid transfer of an estate or interest in real property shall not be invalidated merely because

the nonprofit association did not record a statement of authority in accordance with this section.

    Sec. 7. (NEW) (a) A nonprofit association is a legal entity separate from its members for the purposes of

determining and enforcing rights, duties and liabilities in contract and tort.

    (b) A person is not liable for a breach of a nonprofit association’s contract merely because the person is a

member, is authorized to participate in the management of the affairs of the nonprofit association or is a person

considered to be a member by the nonprofit association.

    (c) A person is not liable for a tortious act or omission for which a nonprofit association is liable merely

because the person is a member, is authorized to participate in the management of the affairs of the nonprofit

association or is a person considered to be a member by the nonprofit association.

    (d) A tortious act or omission of a member or other person for which a nonprofit association is liable is not

imputed to any other person merely because that other person is a member, is authorized to participate in the

management of the affairs of the nonprofit association or is a person considered to be a member by the nonprofit

association.

    (e) A member of, or a person considered to be a member by, a nonprofit association may assert a claim against

the nonprofit association, except that employees represented for collective bargaining by a labor organization as

defined in section 31-77 may not assert claims against labor organizations in contravention of section 31-114. A

nonprofit association may assert a claim against a member or a person considered to be a member by the

nonprofit association.

    Sec. 8. (NEW) (a) A nonprofit association, in its name, may sue or be sued and may institute, defend, intervene,

or participate in judicial, administrative or other governmental proceedings or in an arbitration, mediation or any

other form of alternative resolution.

    (b) A nonprofit association may assert a claim in its name on behalf of its members if one or more members of

the nonprofit association have standing to assert a claim in their own right, the interests the nonprofit

association seeks to protect are germane to its purposes, and neither the claim asserted nor the relief requested

requires the participation of a member.

    (c) The property of a nonprofit association, whether held by it or by a fiduciary for its benefit, may be subject

to any order or judgment against either the nonprofit association or the property.

    Sec. 9. (NEW) A judgment or order against a nonprofit association is not by itself a judgment or order against a

member or a person considered to be a member by the nonprofit association, or a person authorized to

participate in the management of the affairs of the nonprofit association, except as provided in section

47-259(b)(1).

    Sec. 10. (NEW) If a nonprofit association has been inactive for three years or longer, or a different period

specified in a controlling document of the nonprofit association, a person in possession or control of personal

property of the nonprofit association may transfer custody of the property:

    (1) As provided by law or by a controlling document of a nonprofit association, provided the controlling

document is consistent with other applicable law; or

    (2) in the absence of any law or applicable provision in a controlling document of the nonprofit association, to

a nonprofit association or nonprofit corporation pursuing broadly similar purposes or to a government,

governmental subdivision, agency or instrumentality.

    Sec. 11. (NEW) (a) Each nonprofit association may have and maintain a statutory agent for service in this state

as provided in this section. A statutory agent for service shall be an individual who is a resident of this state.

    (b) A nonprofit association's statutory agent for service shall be appointed by filing with the Secretary of the

State a written appointment in such form as the Secretary of the State shall prescribe setting forth: (1) The name

of the nonprofit association; (2) the federal tax identification number of the nonprofit association; (3) the address

in this state of the nonprofit association, or if the nonprofit association does not have an address in this state,

its address out of state; (4) the name of the statutory agent for service; and (5) the business and residence

address of the agent. In each case the address shall include the street and number or other particular

designation. Each written appointment shall also be signed by the statutory agent for service therein appointed.

    (c) A statutory agent for service may resign by filing with the Secretary of the State a signed statement in

duplicate to that effect. The Secretary of the State shall forthwith file one copy and mail the other copy of such

statement to the nonprofit association at the office of the nonprofit association designated in the appointment of

the statutory agent for service. Upon the expiration of thirty days after such filing, the resignation shall be

effective and the authority of such statutory agent for service shall terminate. A nonprofit association may

revoke the appointment of a statutory agent for service by making a new appointment as provided in this section

and any new appointment so made shall revoke all appointments theretofore made.

    (d) Any process, notice or demand in connection with any action or proceeding required or permitted by law to

be served upon a nonprofit association may be served upon the nonprofit association's statutory agent for

service by any proper officer or other person lawfully empowered to make service.

    (e) If it appears from the records of the Secretary of the State that the nonprofit association has not appointed

or maintained a statutory agent for service, or if the plaintiff or his attorney attach to the process, notice or

demand an affidavit stating that the plaintiff does not know and, despite reasonable diligence, has been unable

to ascertain the address of the nonprofit association or the address of any of its officers, or if it appears by

affidavit endorsed on the return of the officer or other proper person directed to serve the process, notice or

demand upon the nonprofit association's statutory agent for service appearing on the records of the Secretary of

the State that such agent cannot, with reasonable diligence, be found at the address shown on such records as

the agent's address, service of the process, notice or demand on the nonprofit association may, when timely

made, be made by such officer or other proper person by: (1) Leaving a true and attested copy thereof together

with the required fee at the office of the Secretary of the State or depositing the same in the United States mails,

by registered or certified mail, postage prepaid, addressed to such office, and (2) depositing in the United States

mails, by registered or certified mail, postage prepaid, a true and attested copy thereof, together with a statement

by such officer that service is being made pursuant to this section, addressed to the nonprofit association at its

last known principal office.

    (f) The Secretary of the State shall file the copy of each process, notice or demand received by him as provided

in subsection (e) of this section and keep a record of the day and hour of such receipt. Service made as provided

in this section shall be effective as of such day and hour.

    (g) An amendment to or cancellation of an appointment of a statutory agent to receive service of process must

meet the requirements for execution of an original appointment.

    (h) The execution of any document to be filed with, or delivered to, the Secretary of the State shall constitute

an affirmation under the penalties of false statement by the person signing the document that the facts stated

therein are true.

    (i) Nothing contained in this section shall limit or affect the right to serve any process, notice or demand

required or permitted by law to be served upon a nonprofit association in any other manner permitted by law.

    (j) The Secretary of the State shall charge and collect a fee, and remit it to the Treasurer for the use of the state,

for filing an appointment of a statutory agent for service, an amendment or cancellation thereof or a resignation,

in an amount charged for filing similar documents.

    Sec. 12. (NEW) A claim for relief against a nonprofit association does not abate merely because of a change in

its members or persons authorized to manage the affairs of the nonprofit association.

    Sec. 13. (NEW) For purposes of venue, a nonprofit association is a resident of the judicial district in which it

has an office or in which it carries out its principal business or conducts its affairs.

    Sec. 14. (NEW) If any provision of this Act or its application to any person or circumstances is held invalid, the

invalidity does not affect any other provisions or applications of this Act which can be given effect without the

invalid provision or application, and to this end the provisions of this Act are severable.

    Sec. 15. (NEW) This Act does not affect any rights accrued before this Act takes effect or any action or

proceeding then pending.

    Sec. 16. (NEW) Section 47-6 of the general statutes is repealed and the following substituted in lieu thereof:

Conveyances of real estate made to or by any corporation or [the trustees of ]any voluntary association [,] may

be attested by witnesses interested therein, and may be acknowledged before properly authorized persons who

are so interested.

    Sec. 17. (NEW) Sections 52-76 and 52-292 of the general statutes are repealed.

STATEMENT OF PURPOSE: To adopt the Uniform Unincorporated Nonprofit Association Act.

 

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