The Supremacy Clause "RULES"

 IRS Code 501-c-12 requires nonprofit businesses to return margins to members. The code does not specify how this is to be done; it just requires it. Margins can easily be returned to members by any cooperative administration; administrators just have to want to. In an August 2019 article signed by all Garkane Energy Directors, CEO Dan McClendon said; “…at the end of every accounting year, if there is money left over after all operational costs have been paid, the excess (labeled “margin”) is allocated back to the members who were served in that year. The “allocation” (capital credit) is a promise that the coop will pay back the member’s portion of margin in the future.” Garkane directors “promise” to return margins to members.

The 14th Amendment to the United States Constitution forbids states from transferring property ownership from A to B. Amendment XIV of The Constitution says: “No state shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any State deprive any person of life, liberty, or property, without the due process of law; nor deny any person within its jurisdiction the legal protection of the laws.”

https://constitution.congress.gov/constitution/amendment-14/

H.B. 266 is a state action that does take property from rightful owners and gives it to cooperative CEOs and boards through board lobbied earmarks that designate targeted “gifting.” The targeted allowances were lobbied by Garkane administrators. 

https://le.utah.gov/~2016/bills/static/HB0266.html (Scroll to line 347 to read the "Amendment")

The supremacy clause in Article VI, paragraph two of the Constitution declares that federal law preempts state law. The 14th Amendment and IRS Code 501-c-12 are federal laws. 

https://constitution.congress.gov/constitution/article-6/