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Limited co-op associations debut in Spokane

Limited Cooperative Associations

In 2019, Washington state passed legislation creating Limited Cooperative Associations (LCAs), which are holding companies that offer a new pathway for investment into worker- and community-owned businesses. LCAs act as a mini-mutual funds, where one check can be invested in a diversified business portfolio. In addition, one-third of an LCAs governing board must be a worker-owner of the entity. Our lead article discusses the Spokane Workers Cooperative, which includes 38 worker-owners across five companies: a brewery, a bakery, a media, an advertising agency, a podcast operation, and a local media company. To date, this LCA has attracted $711,000 in outside investment.

 

Limited Cooperative Associations

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1 Comments

  1. Russ Fletcher on August 12, 2022 at 12:35 pm

    Tracy McIntyre – Executive Director – Montana Cooperative Development Center (MCDC) https://www.mcdc.coop/ writes:

    We have our attorney researching these right now. However, with our state laws, we are not convinced that we would need to have this type of law enacted. We can already do worker conversions, worker-owner and investment cooperatives in Montana under our laws. Cooperatives are a global form of business that are controlled on state levels, so Washington state laws were limited, and the LCA’s works well. Colorado and Nebraska have adopted LCA’s too and I believe other states. Montana current cooperative laws gives us a lot of freedom to respond to a different community and economic needs.

    If we find that we need to adopt LCA’s I will keep you posted!

    As a side note, our Montana Council of Cooperatives is working on legislation as we speak to modernize our cooperative laws which will help clean up our ability to respond to the need. It also will make it more favorable for cooperatives to attract preferred stock (investment).

    Thank you

    Tracy McIntyre

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