To repeal sections 274.220 and 274.230, RSMo 1994, relating to cooperatives, and to enact two new sections relating to the same subject.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI,

AS FOLLOWS:

Section A. Sections 274.220 and 274.230, RSMo 1994, are repealed and two new sections enacted in lieu thereof, to be known as sections 274.220 and 274.230, to read as follows:

274.220. 1. An association may organize, form, operate, control, have an interest in, or be a member of [any other] a corporation or [corporations, without capital stock,] other entity and engage in preserving, drying, processing, canning, packing, storing, handling, shipping, utilizing, manufacturing, marketing or selling of the agricultural products handled by the association, or the by-products thereof.

2. If such corporations are warehousing corporations, they may issue legal warehouse receipts to the association against the commodities delivered by it, or to any other person and such legal warehouse receipts shall be considered as adequate collateral to the extent of the usual and current value of the commodity represented thereby.

3. In case such warehouse is licensed or licensed and bonded under the laws of this or any other state or the United States, its warehouse receipt delivered to the association on commodities of the association or its members, or delivered by the association or its members, shall not be challenged or discriminated against because of ownership or control, wholly or in part, by the association.

274.230. Any association may, upon resolution adopted by its board of directors, enter into all necessary and proper contracts, and arrangements with [any other cooperative] a corporation, [association or associations, formed in this or in any other state] person or other entity, for the [cooperative and] more economical carrying on of its business or any part or parts thereof. Any two or more associations may, by agreement between them, unite in employing and using or may separately employ and use the same personnel, methods, means and agencies for carrying on and conducting their respective business.