Article XII
Sec. 10: The legislature shall provide by law for the incorporation, regulation and supervision of fraternal beneficiary societies, with the power to issue death benefit certificates, only which law shall require that such societies, in order to be incorporated, or to do business within the state, must have—
(a) A representative or a democratic form of self-government, including the fixing of its own rates, and the election of its officers, with provision for the recall of officers by a majority vote of the membership, upon petition of not greater than 15 per cent of the membership.
(b) Provision for initiating changes in constitution or laws upon petition of 10 per cent of the membership, and for a referendum vote of the membership upon any changes in the constitution or laws, upon petition of the same percentage.
(c) Provisions requiring the officers, upon demand of five local branches, to furnish complete mailing list of members for use in connection with the exercise of the initiative, referendum or recall.
No law shall be valid which shall allow any such society,
(a) To create a legal reserve fund, or to be valued or collect assessments upon any basis of rates which will in operation collect an amount annually in excess of the average mortuary cost per one thousand dollars ($1,000) insurance in force of the successful legal reserve insurance companies of fifty years’ experience, in addition to the necessary expenses of such societies; or,
(b) To have a lodge system or ritual.
All fraternal beneficiary societies authorized to do business in this state on March 1, 1914, may continue to do such business until the legislature shall pass laws in compliance with the foregoing provisions; provided that no such society may continue to do business for more than one year after this section shall go into effect, unless its constitution and laws shall comply with this section; provided, however, that any such society organized under laws of any other state may provide that as to business within this state the foregoing provisions shall govern, and that as to such business the vote of the majority of its members in this state shall be binding, in which case all liabilities accruing on Michigan business shall be made payable from assessments on Michigan members.
