AB 816 — Cooperative corporations: worker cooperatives.

Summary

Existing law, the Consumer Cooperative Corporation Law, governs the organization and operation of consumer cooperative corporations. The law specifies the provisions that may be set forth in the articles of incorporation of a consumer cooperative. Existing law provides for, among other things, information to be included in a corporation's bylaws, definitions necessary for purposes of defining patrons, and requirements as to voting rights of members. Except as specified, existing law requires that the voting power of members having voting rights in a cooperative corporation be equal. Existing law also requires cooperative corporations to hold a meeting of members annually. Existing law makes the violation of specified provisions a crime. This bill would rename the law the Cooperative Corporation Law, and authorize a cooperative corporation to elect to designate itself as a worker cooperative in its articles of incorporation. The bill would require that 51% of the workers shall be worker-members or candidates. The bill would authorize a worker cooperative to apportion and distribute its net earnings and losses at the time and in the manner specified in the articles of incorporation or bylaws. The bill would require a worker cooperative to only make patronage distributions to the worker-member class. The bill would define the patrons of a worker cooperative as worker-members and authorize their patronage to be measured by work performed. The bill would authorize a worker cooperative to issue a membership, that is not divisible into partial memberships, having the rights, privileges, preferences, restrictions, or conditions as provided in the articles or bylaws. This bill would also authorize a worker cooperative to establish itself as a capital account cooperative in its articles or bylaws, in which case the entire net book value of the corporation would be reflected in member capital accounts, one for each member, and an unallocated capital account, if any, as specified. This bill would also authorize a worker cooperative to establish itself as a collective board worker cooperative, in which all worker-members serve on the board. A collective board worker cooperative would not be required to hold an annual meeting of members. This bill would authorize 2 or more worker cooperatives to consolidate, as specified, prescribe the actions to be taken upon the dissolution of a worker cooperative, and make other conforming changes. The Corporate Securities Law of 1968 generally regulates the offer and sale of securities in this state. That law requires the offer and sale of securities to be qualified with the Commissioner of Business Oversight, and exempts specified transactions or securities from qualification. That law makes it unlawful for a person in connection with the offer or sale of a security to engage in fraudulent or misleading acts or omissions. The shares or memberships by a corporation subject to the Consumer Cooperative Corporation Law are exempt from the qualification requirement, if the investment does not exceed $300. The bill would increase the investment limitation of the above-referenced exemption from qualification from $300 to $1,000.

Bill Text

• Chaptered 08/12/15 - Chaptered Current pdf August 12, 2015
• Enrolled 07/21/15 - Enrolled pdf July 21, 2015
• Amended 07/06/15 - Amended Senate pdf July 06, 2015
• Amended 06/22/15 - Amended Senate pdf June 22, 2015
• Amended 05/14/15 - Amended Assembly pdf May 14, 2015
• Amended 04/30/15 - Amended Assembly pdf April 30, 2015
• Amended 04/13/15 - Amended Assembly pdf April 13, 2015
• Introduced 02/26/15 - Introduced pdf February 26, 2015
• AB816 View text html

Action History

1. August 12, 2015

   Chaptered by Secretary of State - Chapter 192, Statutes of 2015.

2. August 12, 2015

   Approved by the Governor.

3. August 03, 2015

   Enrolled and presented to the Governor at 3 p.m.

4. July 16, 2015

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 59. Noes 18. Page 2416.).

5. July 13, 2015

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after July 15 pursuant to Assembly Rule 77.

6. July 13, 2015

   Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 1906.).

7. July 09, 2015

   Read second time. Ordered to third reading.

8. July 08, 2015

   Ordered to second reading.

9. July 08, 2015

   Withdrawn from committee.

10. July 06, 2015

    Read second time and amended. Re-referred to Com. on JUD.

11. July 02, 2015

    From committee: Amend, and do pass as amended and re-refer to Com. on JUD. (Ayes 7. Noes 0.) (July 1).

12. June 22, 2015

    From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.I.

13. June 04, 2015

    Referred to Coms. on B. & F.I. and JUD.

14. May 22, 2015

    In Senate. Read first time. To Com. on RLS. for assignment.

15. May 22, 2015

    Read third time. Passed. Ordered to the Senate. (Ayes 55. Noes 17. Page 1551.)

16. May 18, 2015

    Read second time. Ordered to third reading.

17. May 14, 2015

    Read second time and amended. Ordered returned to second reading.

18. May 13, 2015

    From committee: Amend, and do pass as amended. (Ayes 12. Noes 5.) (May 13).

19. May 04, 2015

    Re-referred to Com. on APPR.

20. April 30, 2015

    Read second time and amended.

21. April 29, 2015

    From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 3.) (April 27).

22. April 14, 2015

    Re-referred to Com. on B. & F.

23. April 13, 2015

    From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.

24. March 12, 2015

    Referred to Com. on B. & F.

25. February 27, 2015

    From printer. May be heard in committee March 29.

26. February 26, 2015

    Read first time. To print.

Sponsors

• Dababneh · Cosponsor
• Hancock · Cosponsor
• Mia Bonta · Primary

Votes

Subjects