Proposition 138:
An Act Modernizing The State's Cooperative Association Statutes
Proposition 138 has been introduced in the CT legislature to enhance the existing CT Co-operative statutes and encourage more co-ops to incorporate in our state. The bill was initiated by folks at the Willimantic Food Co-op and developed with the support of the Neighboring Food Co-op Association .
Connecticut ranks lower than the other New England states in terms of co-ops per capita, in part due to outdated laws that deter groups from incorporating as a co-op. This proposal seeks to minimize those barriers.
As with any legislative proposal, public support for the bill is needed. If you are interested in possibly writing a letter of support, please review the talking points below and see the sample letter which you may adapt and send to your state Representative or Senator!
Connecticut ranks lower than the other New England states in terms of co-ops per capita, in part due to outdated laws that deter groups from incorporating as a co-op. This proposal seeks to minimize those barriers.
As with any legislative proposal, public support for the bill is needed. If you are interested in possibly writing a letter of support, please review the talking points below and see the sample letter which you may adapt and send to your state Representative or Senator!
Testimony can be emailed to judtestimony@cga.ct.gov
Talking Points and Background White Paper (link)
Erbin Crowell of the Neighboring Food Co-op Association drafted this memo summarizing the talking points underscoring the need for this change to CT Chapter 595.
Sample Letter to Legislators (link)
[Date]
To [Your State Representative or Senator]
[Mailing Address and/or E-mail]
Dear [Name],
I am writing today to ask that you support the passage of Proposed Bill No. 138: An Act Modernizing the State's Cooperative Association Statutes, with NO amendments.
This commonsense legislation will bring our state’s co-operative statute, “General Statutes Title 33: Corporations; Chapter 595: Co-operative Associations,” up to date and more in line with statutes in nearby states, making it easier for entrepreneurs to form co-operative enterprises and supporting the growth of existing co-ops, while reinforcing the principle of democratic member governance, free from interference by external non-member interests.
Connecticut currently ranks among the lowest in New England in terms of the number of co-ops as a proportion of population, due in part to outdated legislation that restricts their development. For example, in contrast to other corporations, current law holds individual co-op members liable for the debts of their business. Changing this provision would put existing co-ops on an even playing field with other businesses, and encourage entrepreneurs to form new co-ops.
[Use this section to share why the growth and development of co-ops would be a benefit to the state of Connecticut. Examples:
Thank you for your service.
Sincerely,
[Your Name, Address, Phone and E-mail]
To [Your State Representative or Senator]
[Mailing Address and/or E-mail]
Dear [Name],
I am writing today to ask that you support the passage of Proposed Bill No. 138: An Act Modernizing the State's Cooperative Association Statutes, with NO amendments.
This commonsense legislation will bring our state’s co-operative statute, “General Statutes Title 33: Corporations; Chapter 595: Co-operative Associations,” up to date and more in line with statutes in nearby states, making it easier for entrepreneurs to form co-operative enterprises and supporting the growth of existing co-ops, while reinforcing the principle of democratic member governance, free from interference by external non-member interests.
Connecticut currently ranks among the lowest in New England in terms of the number of co-ops as a proportion of population, due in part to outdated legislation that restricts their development. For example, in contrast to other corporations, current law holds individual co-op members liable for the debts of their business. Changing this provision would put existing co-ops on an even playing field with other businesses, and encourage entrepreneurs to form new co-ops.
[Use this section to share why the growth and development of co-ops would be a benefit to the state of Connecticut. Examples:
- If you are a member or employee of a local co-op (for example a food co-op or credit union), share how it has benefited you and your community. If you have served as a board member, share something positive from that experience — for example, the ability of everyday people to serve in elected leadership roles in a business that serves and benefits their community.
- Co-ops are locally owned by local people, making them more responsive to local needs. As we work to build stronger communities, co-ops can be a solution — if we allow them to grow!
- Food co-ops are drivers of local economies. For example, Connecticut’s two retail natural food co-ops alone sell $1.5 million in local products annually. On a regional level, the Neighboring Food Co-op Association reports that its 27 member co-ops sell over $90 million in products from local producers. What if we had more food co-ops?
- As a generation of baby boomer small business owners nears retirement, half of the nation’s privately-held businesses are at risk of buyout or closure. Co-ops can be a solution to this “Silver Tsunami,” preserving local businesses by selling them to their employees and community members when the owner decides to retire.
- Co-ops have been shown to be more resilient during economic down turns, preserving jobs and local economic activity.
- On a global level, there are more that 1 billion members of co-ops. According to the National Cooperative Business Association, 1 in 3 Americans are members of 65,000 co-ops. These businesses generate $75 billion in annual wages and$650 billion in revenue.]
Thank you for your service.
Sincerely,
[Your Name, Address, Phone and E-mail]
