# Maryland SB 0144: Corporations and Associations - Limited Worker Cooperative Associations - Authorization (Maryland Limited Worker Cooperative Association Act) Maryland SB 0144, Corporations and Associations - Limited Worker Cooperative Associations - Authorization (Maryland Limited Worker Cooperative Association Act), is a 2025 Regular Session Senate bill sponsored by Mary Washington (Democratic); status signed, last action 2025-04-22 (Approved by the Governor - Chapter 199); PRIA reads it as touching household money (as of 2026-10-17). - Canonical: https://policyrisk.com/state-bill/MD-SB0144-2025RS - As of: 2026-10-17 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Maryland SB 0144 - State: Maryland - Session: 2025 Regular Session - Title: Corporations and Associations - Limited Worker Cooperative Associations - Authorization (Maryland Limited Worker Cooperative Association Act) - Status: signed - Chamber: Senate - Introduced: 2024-10-16 - Last action: 2025-04-22, Approved by the Governor - Chapter 199 - Sponsor: Mary Washington (Democratic) - Cosponsors: 0 - Subjects: Corporations and Associations, Appeals -see also- Judicial Review, Charters, Commerce and Business -see also- ElectrComm; ForeignTr; etc., Cooperative Associations, Corporations -see also- Municipal Corps; Public Corps & Inst, Fees -see also- Attys' Fees; Devt Fees & Taxes, Gratuities, Hearings, Income Tax, Insurance Administration, Insurance -see also- Health Ins; MAIF; Motor Vehicle Ins, Liability, Limited Liability Companies, Meetings -see also- Hearings; Open Government, Mergers and Acquisitions, Names, Notices, Overtime, Personal Representatives, Records -see also- Land Records; Vital Records, Salaries and Compensation -see also- Overtime; Reimb. Rates, Voting -see also- Absentee and Mail-In Voting, Workers' Compensation, Work, Labor, and Employment -see also- JobTrn; Leave; etc. - Touches household money: yes - Roll calls: 3 (195 yes, 35 no in all) - Economic provisions PRIA read: 10 ## Summary No summary available. ## Bill overview: provisions PRIA read - Debt protections for cooperative members: benefit, low. Beginning October 1, 2026, a cooperative’s debts generally belong to the association, not its members. This default protection applies unless the articles of organization say otherwise. Serving as an assembly voting member or representative alone does not make someone an association agent or person… - Cooperatives gain securities registration exemptions: benefit, low. Beginning October 1, 2026, specified cooperative financial instruments are exempt from registration under Maryland securities law. These include membership interests, patronage refunds, per-unit retain certificates, equity instruments, and evidence of membership interests. The association, its memb… - Cooperative members get earnings and buyout rules: benefit, low. Beginning October 1, 2026, cooperatives divide profits and losses under their governing documents. Declared patronage profits paid or credited to patron members must reflect each member’s work, use, or other patronage that period. Net earnings can be paid in cash, credits, or written allocation not… - Cooperative tax debts can reach managers: cost, medium. Beginning October 1, 2026, cooperative tax duties can create personal liability for managers, members, or responsible agents. People directly controlling finances can owe the cooperative’s admissions and amusement tax or motor fuel tax, plus interest and penalties. If a cooperative negligently fail… - Worker cooperatives pay filing fees: cost, medium. Beginning October 1, 2026, worker cooperatives enter Maryland’s filing and annual-report fee system. Listed fees include $25 to reserve a name, $100 for articles of organization, and $300 for an annual report. Other listed charges include $100 for foreign-name registration or yearly renewal, $100 f… - Cooperative worker status and insurance rules: mixed, low. Beginning October 1, 2026, forming a cooperative does not automatically make worker members employees. Partnership tax treatment also does not require employee status under Maryland law; individual workers’ status remains separately determined. Insurers must base workers’ compensation premiums for… - Cooperative closure and estate rights clarified: mixed, low. Beginning October 1, 2026, cooperatives dissolve after governing-document triggers, judicial dissolution, or qualifying member votes. A dissolution vote needs two-thirds of worker members and two-thirds of all assembly voting power, unless the agreement requires more. Having no members for 90 conse… - Cooperative members gain meeting rights: mixed, low. Beginning October 1, 2026, associations must hold annual member meetings, with notice 10 to 60 days ahead. They must report their business and financial condition at the end of the latest fiscal year. Members holding at least 20% of voting power on an issue can demand a special meeting. A board maj… - New legal option for worker cooperatives: mixed, low. Beginning October 1, 2026, Maryland LLCs can choose limited worker cooperative status in their articles of organization. They generally need three worker members to start business, unless their sole member is another limited worker cooperative association. Worker members must be people who contribu… - Worker cooperatives get board and voting rules: mixed, low. Beginning October 1, 2026, associations need boards of at least three people, except collective worker cooperatives. Boards or their delegates manage the business, and the cooperative agreement sets representatives’ terms. Voting power can reflect members, cooperative membership counts, use, patron… ## Sponsors and cosponsors - Sponsor: Mary Washington (Democratic), Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-04-07 | House | Third Reading Passed | pass | 104 | 35 | | | 2025-04-07 | Senate | Third Reading Passed | pass | 46 | 0 | 1 | | 2025-02-13 | Senate | Third Reading Passed | pass | 45 | 0 | 1 | ## Actions (16) - 2025-04-22: Approved by the Governor - Chapter 199 - 2025-04-07: Passed Enrolled (Senate) - 2025-04-07: Third Reading Passed (46-0) (Senate) - 2025-04-07: Senate Concurs House Amendments (Senate) - 2025-04-07: Third Reading Passed (104-35) (House) - 2025-04-04: Second Reading Passed with Amendments (House) - 2025-04-04: Favorable with Amendments {163623/1 Adopted (House) - 2025-04-04: Favorable with Amendments Report by Economic Matters (House) - 2025-02-14: Referred Economic Matters (House) - 2025-02-13: Third Reading Passed (45-0) (Senate) - 2025-02-11: Second Reading Passed with Amendments (Senate) - 2025-02-11: Favorable with Amendments {733224/1 Adopted (Senate) - 2025-02-10: Favorable with Amendments Report by Judicial Proceedings (Senate) - 2025-01-08: First Reading Judicial Proceedings (Senate) - 2025-01-02: Hearing 1/09 at 2:00 p.m. (Senate) - 2024-10-16: Pre-filed (Senate) ## Bill text - Enacted, 2025-04-22: [PDF](https://mgaleg.maryland.gov/2025RS/Chapters_noln/CH_199_sb0144e.pdf) - Enrolled, 2025-04-07: [PDF](https://mgaleg.maryland.gov/2025RS/bills/sb/sb0144e.pdf) - Third Reading, 2025-02-11: [PDF](https://mgaleg.maryland.gov/2025RS/bills/sb/sb0144t.pdf) - First Reading, 2025-01-02: [PDF](https://mgaleg.maryland.gov/2025RS/bills/sb/sb0144f.pdf) ## Related bills - HB 0384: Maryland Disability Service Animal Program - Established (vetoed) - SB 0227: Workers' Compensation - Payment From Uninsured Employers' Fund - Revisions (vetoed) - HB 0482: Occupational Licensing and Certification - Criminal History - Predetermination Review Process (vetoed) - SB 0157: Maryland Disability Service Animal Program - Established (vetoed) - HB 1294: Commercial Law - Credit Regulation - Earned Wage Access and Credit Modernization (became law) - HB 0228: Maryland Veterans Trust – Assistance to Members of the Maryland National Guard (signed) ## Sources - [Enacted (PDF)](https://mgaleg.maryland.gov/2025RS/Chapters_noln/CH_199_sb0144e.pdf) - [Enrolled (PDF)](https://mgaleg.maryland.gov/2025RS/bills/sb/sb0144e.pdf) - [Third Reading (PDF)](https://mgaleg.maryland.gov/2025RS/bills/sb/sb0144t.pdf) - [First Reading (PDF)](https://mgaleg.maryland.gov/2025RS/bills/sb/sb0144f.pdf) ## Related - [HB 0384: Maryland Disability Service Animal Program - Established](https://policyrisk.com/state-bill/MD-HB0384-2025RS) - [SB 0227: Workers' Compensation - Payment From Uninsured Employers' Fund - Revisions](https://policyrisk.com/state-bill/MD-SB0227-2025RS) - [HB 0482: Occupational Licensing and Certification - Criminal History - Predetermination…](https://policyrisk.com/state-bill/MD-HB0482-2025RS) - [SB 0157: Maryland Disability Service Animal Program - Established](https://policyrisk.com/state-bill/MD-SB0157-2025RS) - [HB 1294: Commercial Law - Credit Regulation - Earned Wage Access and Credit Modernization](https://policyrisk.com/state-bill/MD-HB1294-2025RS) - [HB 0228: Maryland Veterans Trust – Assistance to Members of the Maryland National Guard](https://policyrisk.com/state-bill/MD-HB0228-2025RS) - [Maryland bills](https://policyrisk.com/states/maryland/bills) - [Maryland state hub](https://policyrisk.com/states/maryland) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/MD-SB0144-2025RS (as of 2026-10-17).