Kansas Statutes Annotated

K.S.A. § 17-1602 (2026)

Definitions, nonprofit character of associations

✓ current as of May 2026

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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.

Notes of Decisions

Cited in 2 cases, 1947–1987 · leading case: Atchison Cnty. Farmers Union Co-Op Ass'n v. Turnbull, 736 P.2d 917 (Kan. 1987).

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Atchison Cnty. Farmers Union Co-Op Ass'n v. Turnbull, 736 P.2d 917 (Kan. 1987). “The articles of incorporation and bylaws of an association provide the means to obtain the necessary funds or capital to pay the expense of operations and acquire property necessary to carry out its purposes.”

State ex rel. Arn v. Consumers Coop. Ass'n, 183 P.2d 423 (Kan. 1947). · cites it 2× “attention to subsection (d) of section 17-1602, in which it is provided that marketing associations are not organized to make a profit for themselves but for their members as producers, with emphasis on the words “members as producers.”

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