Re: [Mpls] Mpls reps' proposed law affecting Mpls neighborhood organizations

[Bensonale]

First, thanks David for bringing this issue to the attention of the list.  I
want to stress that this bill was a reaction to concerns raised by
neighborhood associations.

Jay Clark and I began discussing the need for a change to the nonprofit law
some time ago, before the issue with regard to Central developed.  Our basic
premise was that it should not be more difficult to vote for your
neighborhood association's board members than it is to vote for President of
the United States or other elected officials.  Unfortunately, the laws
governing nonprofit corporations, if they are followed, place huge barriers
in the way of those who might want to vote in such elections.  We brought the
issue to Representative Jean Wagenius, who was extremely helpful in setting
up meetings to begin drafting a bill to change to the law.  Let me explain in
more detail why we thought a change was necessary.  This will be a bit
simplified, but please contact me with further questions.

Neighborhood associations are formed as nonprofit corporations.  The laws
governing nonprofit corporations require that only "members" who
affirmatively indicate in some way that they wish to be "members" of the
corporation are allowed to vote at the annual meeting of the corporation.  
"Membership" cannot be conferred on someone automatically because they fall
within a certain class or because they live in a certain geographic area.  
Further, the list of those who are "members" of the nonprofit corporation
must be closed 30 days prior to the election.  This defeats same day
registration for those who decide that they want to come to the neighborhood
association's annual meeting and vote for the board of directors.  

Because the goal was to broaden participation, the notice requirements of the
present nonprofit corporation laws had to be changed to allow an alternative
means to publicize annual meetings other than by a mailing to all "members."  

I became concerned about this when it was brought to my attention that the
Hale, Page and Diamond Lake bylaws, which allow residents of HPDL, HPDL
business owners, and others to be members of HPDL and vote at the annual
meeting, do not comply with these provisions of the nonprofit corporation
statutes.  Our practice of letting people vote at annual meetings even if
they had not affirmatively indicated that they were members of the HPDL
neighborhood association at least 30 days prior to the meeting also violated
those laws.  

When we brought our concerns to Representative Wagenius, our hope was to
allow all those people who were eligible to be voting members in the bylaws
of neighborhood associations to vote at the annual meeting.  We wanted to let
people register on the same day of the annual meeting.  We hoped to make it
as easy to vote for your neighborhood's board as it is to vote for other
elected officials.  We hoped to broaden participation to the level provided
for in the bylaws of the neighborhood associations.

To the extent that the bill as presently drafted does not accomplish these
goals, please make suggestions for changes to the language.  Jay Clark and
Bob Miller have already made many good suggestions on how to make sure new
residents, renters, business owners, etc., are allowed to vote at an annual
meeting.  I know that Representative Wagenius and the rest of the Minneapolis
delegation are very interested in receiving your comments.

I want to stress again that this effort was born out of the frustration of
many neighborhoods in being told that they had to comply with a law that
diminished participation and which was at odds with their bylaws.  The fact
that these legislators, and particularly Representative Wagenius, have been
so helpful in addressing this problem speaks highly of them. Please help us
make this bill better with your suggestions.  

Scott Benson
Page Neighborhood
Ward 11