SECTIONS 10700-10703 - California Statutes

CORPORATIONS CODE

SECTION 10700-10703

10700. As used in this part, "public agency" includes every port
district, river port district, municipal port district, harbor
district, harbor improvement district, joint harbor improvement
district, Board of State Harbor Commissioners, board of harbor
commissioners, city, county, and city and county in this state.

10701. Every public agency owning or operating any port or marine
terminal and every public agency organized for such purposes may
associate itself with other public agencies, private corporations or
individuals owning or operating, or organized for the purpose of
owning or operating, ports or marine terminals located on the same
harbor, bay, or other waterway or on communicating or related
waterways, of this state and with other public agencies and with
private corporations and individuals, or any of them, in the
formation under the Nonprofit Mutual Benefit Corporation Law, Part 3
(commencing with Section 7110) of this division, and may become and
remain a member of a nonprofit corporation organized under the
Nonprofit Mutual Benefit Corporation Law for the purpose of, or the
principal powers and purposes of which include carrying on a program
of nonregulatory activities in the common interests of its members,
including but not limited to any or all of the following activities:
studies and research into traffic conditions, cargo volume, rate
structures, cost factors, commercial transportation practices, and
similar fields; the acquisition and dissemination of information
relative to the said and similar subjects; the representation of the
common interests of its members before federal, state, and local
legislative and administrative authorities; and service as a facility
for the cooperation of its members and the coordination of their
activities toward the maintenance and improvement of the commercial
welfare and competitive position of the ports and terminals owned or
operated by its members, the maintenance of equitable and
nondiscriminatory rate structures, and the elimination of
inequitable, unfair, or discriminatory trade practices adversely
affecting the interests of its members; and the undertaking or
coordination of any other program of related activities or in related
fields for the mutual benefit of its members as may be desired by
the membership. Every such public agency may pay the dues and
assessments required of its members by such nonprofit mutual benefit
corporation out of any funds available to it for that purpose or for
its support; may make contracts; may enter into agreements; may
appoint an individual as its representative to such nonprofit mutual
benefit corporation to exercise the voting power of such public
agency and to act in its behalf with respect to such nonprofit mutual
benefit corporation; and may do or perform all acts necessary and
proper to carry out the purposes of this part; but no public agency
shall become or remain a member of any such nonprofit mutual benefit
corporation unless the articles of incorporation or the bylaws of the
nonprofit mutual benefit corporation include at all times a
provision limiting the liability of members to assessments to a
specified or ascertainable amount.

10702. For the purposes of this part, of the Nonprofit Mutual
Benefit Corporation Law, and of the General Corporation Law of this
state, every public agency and private corporation qualifying under
this part shall be deemed to be a "person" and shall have the legal
capacity to act as incorporator and as member of any nonprofit mutual
benefit corporation formed under the provisions of this part.

10703. If, when, and during such times as public agencies or
individuals duly authorized to represent them and act in their behalf
constitute a majority of the incorporators or of the directors and
are entitled to exercise a majority of the voting power of a
nonprofit mutual benefit corporation pursuant to this part:
(a) The Corporate Securities Law (Division 1 (commencing with
Section 25000) of Title 4) shall not apply to memberships nor to
membership certificates issued by the corporation; and
(b) The corporation shall be exempt from payment of any taxes
under the Bank and Corporation Tax Law (Part 11 of Division 2 of the
Revenue and Taxation Code), except as provided in Article 2 of
Chapter 4 thereof.