Bill > HB15

This bill establishes a comprehensive legal framework for Limited Worker Cooperative Associations (LWCAs) in Maryland, providing a new type of business entity that allows workers to collectively own and manage their businesses. The bill defines an LWCA as a limited liability company that elects to operate under specific democratic principles, with worker members having primary control and decision-making power. Key provisions include allowing multiple membership classes, establishing democratic governance structures like an annual assembly and board of representatives, and creating rules for voting, profit distribution, and membership rights. LWCAs can have worker members, investor members, and must have at least three worker members to begin operations. The legislation ensures that voting power can be allocated through various methods (such as one member/one vote or based on patronage), and requires the cooperative agreement to outline capital structure, membership rights, and governance details. The bill also provides specific rules for dissolution, membership transfer, and financial management, emphasizing worker-driven decision-making. Importantly, the bill clarifies that LWCA worker members are not automatically considered employees and provides guidelines for workers' compensation insurance calculations. The legislation aims to support worker-owned businesses by creating a flexible, democratically-managed business structure that prioritizes worker interests while allowing for investment and growth.

Business and Industry, Justice

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0015?ys=2025RS