The proposed bill aims to establish a framework for the creation and operation of workers cooperative corporations in West Virginia, designated as the West Virginia Workers Cooperative Corporations Act. It includes provisions for defining key terms, such as "worker cooperative," "capital account cooperative," and "collective board worker cooperative." The bill emphasizes the purpose of these cooperatives to create sustainable jobs, enhance employee wealth, and focus on local economic viability rather than shareholder profits. It also outlines the necessary articles of incorporation, including the requirement for cooperatives to state their designation as a worker cooperative and the option to establish themselves as capital account cooperatives.

Additionally, the bill provides guidelines for the dissolution of worker cooperatives, stipulating that upon dissolution, the majority of the unallocated capital account must be distributed to members based on patronage, capital contributions, or a combination of both. It also allows for the inclusion of patronage from past and current members in the distribution process. The bill ensures that any amounts in the indivisible reserve account are allocated to an approved national federation or regional body upon dissolution. Overall, the legislation seeks to promote employee ownership and community-focused business practices in West Virginia.

Statutes affected:
Introduced Version: 31D-18-1801, 31D-18-1802, 31D-18-1803, 31D-18-1804, 31D-18-1805