by Corey Reidy (PACA) and Mo Manklang (USFWC)
On 10/20/26 HB135, a bill advocated for by the Philadelphia Area Cooperative Alliance (PACA) with support from the USFWC as well as the Keystone Development Center (KDC), unanimously passed the PA Senate and has now become law.
PA State Bill HB 135: Amending Filing Requirements for Cooperative Corporations was championed and brought forward by Representative Rick Krajewski. This commonsense bipartisan legislation will make it easier to start a worker cooperative by lowering the number of workers required to file from 5 to 3. With this new legislation, incorporating as a co-op becomes more accessible, helping to push forward our collective work in building the cooperative economy.
How it happened
HB135 originated through conversation in PACA’s Policy and Advocacy Circle in early 2025, growing directly out of Philly business needs – PACA has worked directly with workers looking to incorporate as a cooperative who needed this amendment in order to fully realize their business vision. After meeting with Rep. Krajweski’s office on ways to meaningfully support worker cooperatives, this piece of legislation quickly moved through PA legislation, passing out of the PA House in December 2025, with a vote of 194 – 9. The legislation then moved through the PA senate, and was unanimously passed 50-0 in October of 2026. This effort represents a combined effort of PACA, the USFWC, KDC as well as support from the PA Center for Employee Ownership.
We applaud Representative Krajewski and his team for championing and working diligently to pass this legislation as well as Senator Nikil Saval, for helping us get it over the finish line. AThis tiny but mighty legislation will have huge benefits for co-ops across the state.
