§ 12243 Cooperative Patronage Definitions

(a) (1) If the corporation is organized to provide goods or services to its members, the corporation’s “patrons” are those who purchase those types of goods from, or use those types of services of, the corporation. If the corporation is organized to market, process, or otherwise handle its members’ products or services, the corporation’s “patrons” are those persons whose products or services are so marketed, processed, or handled by the corporation. (2) “Patronage” of a patron is measured by the volume or value, or both, of a patron’s purchases of products from, and use of services furnished by, the corporation, and by products and services provided by the patron to the corporation for marketing. (b) (1) If the corporation is organized as a worker cooperative, the corporation’s “patrons” are its worker-members. (2) If the corporation is organized as a worker cooperative, “patronage” may be measured by work performed, including, but not limited to, wages earned, number of hours worked, number of jobs created, or some combination of these measures. (Amended by Stats. 2015, Ch. 192, Sec. 8. (AB 816) Effective January 1, 2016.)