C.R.S. § 7-80-1215: Public benefit artist company - election.

(1) An artist company may elect at formation or by amending its articles of organization in accordance with this part 12 to be a public benefit artist company by:

(a) Stating in the heading of its articles of organization that it is a "public benefit artist company";

(b) Setting forth in its articles of organization and in its operating agreement, if any, one or more specific public benefits to be promoted by the artist company; and

(c) Stating in its operating agreement, if any, that it is a public benefit artist company.

(2) An artist company that is not formed as a public benefit artist company may become a public benefit artist company by:

(a) Amending its articles of organization and operating agreement to comply with the requirements of subsection (1) of this section; and

(b) Obtaining approval of the election by a majority of all voting interests of the members as required by section 7-80-1209 (1)(b)(V) and the majority of all voting interests of artist-members as required by section 7-80-1209 (1)(c)(III).

(3) A public benefit artist company may cease to be a public benefit artist company by:

(a) Amending its articles of organization to remove the designation as a public benefit artist company and the specific public benefits; and

(b) Obtaining approval of the amendment by a majority of all voting interests of the members as required by section 7-80-1209 (1)(b)(V) and the majority of all voting interests of artist-members as required by section 7-80-1209 (1)(c)(III).

(4) A public benefit artist company that elects to cease being a public benefit artist company remains subject to this part 12 as an artist company.

(5) In the event of any inconsistency between the public benefits to be promoted by a public benefit artist company as set forth in its operating agreement and in its articles of organization, the operating agreement controls among the members, the managers, and other persons that are party to or otherwise bound by the operating agreement.

(6) A manager of a public benefit artist company, or, if there is no manager, any member of a public benefit artist company, that becomes aware that the specific public benefits to be promoted by the public benefit artist company set forth in its operating agreement are inaccurately set forth in its articles of organization shall promptly amend the articles of organization in accordance with section 7-80-1209 (1)(c)(II).

(7) The election to adopt a public benefits provision may facilitate certification of an artist company under third-party standards applicable to public benefit artist companies.