This bill proposes the establishment of a new article in the Code of West Virginia, titled the West Virginia Workers Cooperative Corporations Act, which aims to create a legal framework for employee-owned cooperative corporations. The bill outlines the purpose of these cooperatives, emphasizing the creation and maintenance of sustainable jobs, the improvement of employee-owners' lives, and the promotion of local economic prosperity over shareholder profits. It defines key terms related to worker cooperatives, including "capital account cooperative" and "collective board worker cooperative," and sets forth the requirements for articles of incorporation, including the necessity for a statement indicating the cooperative's status as a worker cooperative.

Additionally, the bill provides guidelines for the governance and operation of these cooperatives, including the distribution of net earnings and losses, the structure of membership, and the conditions for dissolution or consolidation. It specifies that worker cooperatives may not merge with non-cooperative entities and outlines the distribution of assets upon dissolution, prioritizing patronage and capital contributions. The bill also allows for the establishment of unallocated capital accounts and sets limits on member investments, ensuring that the cooperatives remain focused on their mission to benefit employees and the local community.

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