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Bill

SB 144

Corporations and Associations - Limited Worker Cooperative Associations - Authorization (Maryland Limited Worker Cooperative Association Act)

2025 Regular Session Introduced by Mary Washington

Maryland authorizes limited worker cooperative associations as a new legal business structure enabling collective worker ownership and management of enterprises.

Approved by the Governor - Chapter 199
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Bill Summary · SB 144

Legislative bill overview

SB 144 establishes a new legal framework in Maryland for limited worker cooperative associations, creating an alternative business structure where workers can collectively own and manage enterprises. The law authorizes the formation, governance, and operational requirements for these worker-owned cooperatives under Maryland corporate law.

Why is this important

This legislation provides workers with a formal legal mechanism to establish businesses where they share ownership and decision-making power, potentially offering an alternative to traditional corporate employment structures. It expands Maryland's business formation options and could facilitate worker wealth-building and workplace democracy in sectors where cooperatives are viable.

Potential points of contention

  • Implementation complexity: Creating a new business entity type requires regulatory guidance, and businesses may face uncertainty about operational procedures, tax treatment, and liability protections during initial implementation
  • Market viability questions: Critics may question whether cooperatives will be economically competitive compared to traditional corporations, particularly in capital-intensive industries or those requiring rapid decision-making
  • Labor law interactions: Unclear how cooperative governance structures interact with existing employment law, union organizing rights, and worker classification—creating potential legal ambiguities for both operators and regulators

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

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