Definitions, nonprofit character of associations

17-1602. Definitions, nonprofit character of associations. (a) As used in this act: (1) "Agricultural products" shall include horticultural, viticultural, forestry, dairy, livestock, poultry, bee, and farm and ranch products. (2) "Member" shall include actual members of associations without capital stock and holders of common stock in associations organized with capital stock. (3) "Association" means any corporation organized under this act. (4) "Person" shall include individuals, firms, trusts, partnerships, corporations and associations. (5) "Patronage" shall include the volume or dollar value of business transacted with the corporation. (6) "Equity" shall include an initial share or shares of stock to reflect membership as well as amounts allocated to patrons in the form of stock, certificates, or other such instruments or book credits to reflect patronage. (7) "Cooperative" means any association organized under this act, a cooperative association organized under the laws of any other state, any other association or corporation qualifying as a "farmer's cooperative" within the meaning of section 521 of the federal internal revenue code of 1986, and amendments thereto, or any corporation operating on a cooperative basis within the meaning of section 1381 of the federal internal revenue code of 1986, and amendments thereto. (b) Associations organized under this act shall be deemed nonprofit, as they are not organized to make profit for themselves, as such, or for their members as such, but only for their members as producers. This act shall be referred to as the "cooperative marketing act." History: L. 1921, ch. 148, § 2; R.S. 1923, 17-1602; L. 1992, ch. 227, § 2; July 1. Law Review and Bar Journal References: Cooperative marketing act, Ralph E. Hoke, 22 J.B.A.K. 222, 225 (1954). The farmer and his cooperative, Edwin H. White, 7 K.L.R. 334 (1959). "The Kansas Corporation Code of 1972," William E. Treadway, 40 J.B.A.K. 301, 304, 305 (1971). Attorney General's Opinions: Farm winery constitutes an agricultural purpose and is exempt from county zoning regulations. 92-92. CASE ANNOTATIONS 1. Certain association securities within "blue-sky law"; definition of "person" applied in construing K.S.A. 17-1602, 17-1606. State, ex rel., v. Consumers Co-operative Ass'n, 163 Kan. 324, 337, 353, 360, 183 P.2d 423. 2. Plan to convert cooperative society to cooperative marketing association held unjust and inequitable. Hill v. Partridge Co-operative Equity Exchange, 168 Kan. 506, 513, 214 P.2d 316. 3. County farm bureau could not become member of corporation organized hereunder. State, ex rel., v. Franklin County Farm Bureau, 172 Kan. 179, 184, 239 P.2d 570. 4. Deceased's estate not a "person." Hill v. The Partridge Co-operative Equity Exchange, 174 Kan. 5, 6, 254 P.2d 278. 5. Cited in holding cooperative not required to pay accumulation in patron's ledger account to estate of deceased member. Claassen, Executrix v. Farmers Grain Cooperative, 208 Kan. 129, 131, 490 P.2d 376. Previous | Next LEGISLATIVE COORDINATING COUNCIL General Policies 2026 Archived LCC Documents Archived LCC Meetings REVISOR OF STATUTES Archived Session Documents Archived School Finance Documents USEFUL LINKS Session Laws Kansas Administrative Regulations OTHER LEGISLATIVE SITES Kansas Legislature Administrative Services Division of Post Audit Research Department Contact Us PDF Help www.ksrevisor.gov 2026