Bill > S120

Introduced Session

This bill amends and supplements statutory law authorizing the formation of workers' cooperative societies by adding services to the list of permissible purposes of a workers' cooperative society, and updating antiquated references. Additionally, the bill requires the New Jersey Economic Development Authority (EDA) to provide financial and technical assistance to workers' cooperative societies as provided to other small businesses in the State. Workers' cooperative societies are a low-cost way to form small businesses for the mutual benefit of the employees. The New Jersey statute authorizing the formation of workers' cooperative societies was adopted in 1881. Although there are few organizations of this kind in existence today, nationally, interest in the formation of these organizations has grown in recent years. This bill provides for the formation of a workers' cooperative society for the purpose of carrying on a service-related business. The bill also removes certain limitations on par value of shares and persons to whom shares can be transferred, and increases the penalty for malfeasance by members of the board of directors, or other officers and agents. In addition, this bill updates antiquated statutory references, and, regarding the requirement that notice of the first society meeting be sent to members, replaces the option to notify members by publication, with an option to provide notice through certified or registered mail. Dissolution documents will no longer be filed with the Department of State; they will instead be filed with the Department of Labor and Workforce Development (DOLWD). The DOLWD shall also provide, on its website and in publications designed for those seeking employment, information regarding workers' cooperative societies which may be helpful to those seeking to form or join such an organization. Finally, the bill directs the EDA to provide the same technical and financial assistance to workers' cooperative societies as would be provided to any other small business in the State.

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Nilsa Cruz-Perez (D)*, 

Introduced in the Senate, Referred to Senate Labor Committee (on 01/09/2024)

Official Document