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SB 67

AN ACT RELATING TO CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIPS -- WORKERS' COOPERATIVES

2025 Regular Session Introduced by Jonathon Acosta and 5 co-sponsors

Rhode Island legalizes workers' cooperatives as a business structure, enabling employee-owned and democratically-governed enterprises with distinct incorporation and operational rules.

06/04/2025 Senate read and passed
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WeVote Research Nonpartisan
Bill Summary · SB 67

Legislative bill overview

SB 67 establishes a legal framework for workers' cooperatives in Rhode Island, allowing employees to collectively own and democratically govern businesses. The bill creates a new business structure with specific incorporation requirements, ownership rights, and operational guidelines distinct from traditional corporations or LLCs.

Why is this important

Workers' cooperatives enable employee ownership models that can affect wealth distribution, workplace decision-making, and business sustainability in participating sectors. This legislation signals Rhode Island's willingness to experiment with alternative economic structures and may influence employment patterns, labor negotiations, and community economic development in the state.

Potential points of contention

  • Governance complexity: Democratic voting structures in worker-owned enterprises may create slower decision-making processes or management conflicts compared to traditional hierarchical businesses
  • Financial viability concerns: Questions about whether cooperatives can attract sufficient capital investment and compete effectively against traditionally-structured firms in the same markets
  • Tax and benefit implications: Unclear how federal and state tax treatment, worker classification, and benefit eligibility will apply to cooperative structures, potentially creating administrative burdens or unexpected liabilities

Compiled from official sources — confirm details with the bill’s official record.

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